[stop-imf] Rep. Waters Introduces Bipartisan JUBILEE Act

[robert.weissman@essentialinformation.org]

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PRESS RELEASE


For Immediate Release                                           Contact:
Betty Edwards
June 3, 2004
(202) 225-2201


CONGRESSWOMAN WATERS INTRODUCES
BIPARTISAN JUBILEE ACT
TO CANCEL POOR COUNTRIES' IMF DEBTS


        Washington, D.C. -- Today, at a press conference on Capitol Hill,
Rep. Maxine Waters (D-CA) announced the introduction of the JUBILEE Act in
the House of Representatives.  The JUBILEE Act is a bipartisan bill that
will completely cancel the debts that the world's poorest countries owe to
the International Monetary Fund (IMF).

        Joining the Congresswoman as original cosponsors of the JUBILEE Act
are Congressman Jim Leach (R-IA), the former Chairman of the House Banking
Committee; Congressman Barney Frank (D-MA), the Ranking Member of the
Financial Services Committee; Congressman Spencer Bachus (R-AL); and
Congresswoman Barbara Lee (D-CA).  Congresswoman Waters made the following
statement:
>>
>>         "We come together today to introduce a new, bipartisan initiative to
>> cancel poor country debts.  Our initiative, the "Justice and Understanding By
>> IMF Loan Elimination and Equity Act" or the "JUBILEE Act," will bring the
>> Biblical concept of debt forgiveness to the International Monetary Fund
>> (IMF).
>>
>>         "Five years ago, the worldwide Jubilee movement reminded Congress
>> that the Lord instructed the people of Ancient Israel to celebrate a Jubilee
>> -- or a Year of the Lord -- every 50 years.  During a Jubilee Year, debts
>> were forgiven.  The Jubilee movement brought this simple Biblical concept of
>> debt forgiveness into the complicated worlds of politics and finance.
>>
>>         "I worked closely with my colleagues, Representatives Jim Leach,
>> Barney Frank, Spencer Bachus and Barbara Lee and the worldwide Jubilee
>> movement to urge the Clinton Administration, the G-8 group of industrialized
>> nations and the IMF to cancel the debts of the world's poorest countries.
>>
>>         "While we were not able to obtain full debt cancellation for poor
>> countries, our efforts led to the development of the Enhanced Heavily
>> Indebted Poor Countries (HIPC) Initiative to provide debt relief to poor
>> countries.  Debt relief has allowed many poor countries to spend more of
>> their resources on health and education for their people.  In Uganda, for
>> example, as a result of the Enhanced HIPC Initiative, debt service payments
>> were reduced from $151 million per year to $88 million per year.  These
>> savings allowed Uganda to double school enrollment and significantly reduce
>> the rate of HIV transmission.  Imagine what Uganda could have accomplished if
>> its debts had been canceled completely!
>>
>>         "Unfortunately, our efforts to provide a just and comprehensive
>> solution to the problem of poor country debts have been undermined by the
>> policies of the IMF.  The IMF refused to provide full debt cancellation to
>> poor countries under the Enhanced HIPC Initiative.  Instead, poor country
>> debts to the IMF were reduced by less than half.  Some heavily indebted poor
>> countries, such as Kenya, did not receive any debt relief at all from the
>> IMF.  Many other poor countries, such as the Philippines and South Africa,
>> were completely excluded from the Enhanced HIPC Initiative and could not even
>> apply for debt relief.
>>
>>         "The JUBILEE Act would require the IMF to cancel all of the debts
>> owed by heavily indebted poor countries.  The JUBILEE Act will provide
>> complete debt cancellation to all of the poor countries included in the IMF's
>> debt relief program as well as Kenya, the Philippines, South Africa and
>> several other poor countries that have yet to benefit from debt relief.  All
>> of these impoverished countries deserve to have their debts canceled, once
>> and for all."

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