United Nations Votes for Process to Create Global Bankruptcy Framework
UN Process Could Limit Default and Stop Predatory Funds
United Nations Votes for Process to Create Global Bankruptcy Framework Read More »
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UN Vote Tuesday Could Create Global Bankruptcy Process, Deter Predatory Funds
The UN General Assembly votes Tuesday at 3pm (EDT) on a resolution that could create a global bankruptcy mechanism. Such a process could protect poor countries from predatory funds and limit future defaults. Jubilee USA’s leadership, a group of religious leaders and financial experts sent a letter to United States UN Ambassador Samantha Power urging her to support the resolution.
“There’s global consensus to stop predatory behavior,” noted Eric LeCompte, Jubilee USA’s Executive Director who signed the letter. “This resolution is an opportunity to turn consensus into action. A process could begin that allows us to challenge inequality and have real stability.” LeCompte serves on UN expert groups developing a sovereign debt resolution process.
The resolution comes in the wake of Argentina’s legal dispute with predatory hedge funds and hold-out investors. During the course of that dispute, the International Monetary Fund, US Government, United Nations and World Bank all expressed concern that a legal victory for predatory funds would make debt restructurings more difficult. The UN action also follows a proposal from the International Capital Market Association to alter debt rules to curb predatory behavior.
Jubilee USA Network is an alliance of more than 75 US organizations, 400 faith communities and 50 Jubilee global partners. Jubilee’s mission is to build an economy that serves, protects and promotes participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world’s poorest people. www.jubileeusa.org
UN Vote Tuesday Could Create Global Bankruptcy Process, Deter Predatory Funds Read More »
UN Vote Tuesday Could Create Global Bankruptcy Process, Deter Predatory Funds
The UN General Assembly votes Tuesday at 3pm (EDT) on a resolution that could create a global bankruptcy mechanism. Such a process could protect poor countries from predatory funds and limit future defaults. Jubilee USA’s leadership, a group of religious leaders and financial experts sent a letter to United States UN Ambassador Samantha Power urging her to support the resolution.
“There’s global consensus to stop predatory behavior,” noted Eric LeCompte, Jubilee USA’s Executive Director who signed the letter. “This resolution is an opportunity to turn consensus into action. A process could begin that allows us to challenge inequality and have real stability.” LeCompte serves on UN expert groups developing a sovereign debt resolution process.
The resolution comes in the wake of Argentina’s legal dispute with predatory hedge funds and hold-out investors. During the course of that dispute, the International Monetary Fund, US Government, United Nations and World Bank all expressed concern that a legal victory for predatory funds would make debt restructurings more difficult. The UN action also follows a proposal from the International Capital Market Association to alter debt rules to curb predatory behavior.
Jubilee USA Network is an alliance of more than 75 US organizations, 400 faith communities and 50 Jubilee global partners. Jubilee’s mission is to build an economy that serves, protects and promotes participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world’s poorest people. www.jubileeusa.org
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UN Treaty Could Enact Global Bankruptcy Process and Stop Predatory Funds Jubilee USA Urges and Prays for US Support
The UN General Assembly votes Tuesday on a convention that could enact a global bankruptcy process and stop predatory hedge funds. Bolivia proposed the resolution that if voted upon is expected to pass by a majority. The executive board officers of Jubilee USA sent United States UN Ambassador Samantha Power a letter urging her to support the resolution. Jubilee’s 400 US faith communities are holding the Ambassador in prayer as she prepares to vote.
Banks and Investors Call for New Debt Rules In Wake of Argentina Hedge Fund Case
The International Capital Market Association (ICMA), a group of banks and investors, will call Friday for reforms aimed at preventing repeats of the Argentina/NML Capital debt dispute. The ICMA’s plan would reduce the ability of hold-out creditors to litigate and undermine debt restructurings, in part by using contract clauses to bind all bond-holders to debt restructurings that 75% of all holders agree on.Additionally, the plan will argue that the “pari passu” or parity clauses in existing bond contracts should always mean that hold-out funds should always receive the same restructured bonds that the majority of investors agree on.
Banks and Investors Call for New Debt Rules In Wake of Argentina Hedge Fund Case Read More »