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Argentina Takes on Vulture Funds in “Debt Trial of the Century” April 23rd, 2013
For years, “vulture funds” have preyed on struggling nations by purchasing their debt for a pittance. Could an upcoming U.S. court decision put an end to the extortion of poor countries?
Read the article in Sojourner’s Magazine by Jubilee USA Director Eric LeCompte:
Last October, soldiers from the West African nation of Ghana boarded an Argentine naval ship called the Libertad. They overtook the crew and brought the ship to port in the town of Tema. This was not an act of piracy, at least not in the sense we normally understand it. The detaining of the Libertad took place after hedge fund NML Capital convinced a Ghanaian court that the ship, which was sailing in Ghanaian jurisdiction, should be held ransom for a debt the hedge funds claimed Argentina owed them.
The saga began in 2001, when Argentina was thrown into economic crisis and defaulted on its loans. Hedge funds swooped in and bought Argentine debt for almost nothing and circled until the country was in recovery to collect the debt in full.
Jubilee USA holds Vigil Against Vulture Funds outside New York Courthouse February 28th, 2013
Yesterday, Jubilee USA stood with the poor and against vulture funds at the New York 2nd Circuit Court of Appeals – the last stop before the Supreme Court. Anti-debt supporters held a vigil outside and observed with hundreds of people packed into the courtroom, and several overflow rooms.
The media have been very interested in the story. Agence France-Presse (AFP) quoted Jubilee USA Executive Director, Eric LeCompte: “We pray that they will side with the people of Argentina, the US government and the world’s poorest people. If the judges rule in favor of these hedge funds, it will mean these funds will more aggressively target poor countries in fragile financial recovery. If they rule with Argentina, it will mean that it will be harder for these types of funds to exploit countries in financial distress.”
In addition to Jubilee USA’s vigil outside the US Court, Jubilee South organized an amazing demonstration in Buenos Aires and Jubilee Debt Campaign banged pots and pans outside the doors of the London office of the lead vulture fund, NML Capital.
Watch a video of the vigil by Occupy Bronx.
Click here to read more »
The Debt ‘Trial of the Century’ – Vulture Hedge Funds v. Argentina February 26th, 2013
US Government Files Brief Supporting Argentina Faith Community to Vigil Outside Court Proceeding on Wednesday
On February 27th, two holdout vulture funds, including Paul Singer’s NML Capital, are in a New York Federal court verses Argentina. The Financial Times has dubbed the proceeding the “‘the trial of the century’ in sovereign debt restructuring.” The US Government filed a friend-of-the-court brief noting a ruling against Argentina could make it much harder for countries in financial recovery or countries facing economic stresses to access credit and debt swaps.
The faith community and other groups, organized by Jubilee USA, will vigil out of concern for poor people affected by vulture funds during the proceeding outside the Federal 2nd Circuit Court of Appeals Wednesday, February 27th starting at 1:00 PM in New York City. Vigils will also take place in London and Buenos Aires.
“If these vulture hedge funds win, it will mean they will more aggressively target poor countries in fragile financial recovery. If we win, it will mean that it will be harder for vulture funds to target the monies that develop social infrastructure in many poor countries,” said Eric LeCompte, Jubilee USA Network Executive Director. The US Province of the Missionary Oblates of Mary Immaculate is an organizational member of Jubilee USA, and has supported debt relief work for several decades.
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Jubilee USA Meets with White House Staff January 3rd, 2013
On December 20th, the leadership of the Jubilee USA Network met with Gayle Smith, Senior Director at the National Security Council and Special Assistant to President Obama on issues related to debt forgiveness, Vulture funds, tax havens, responsible lending and borrowing, and international financial institution reform. Fr. Seamus Finn, OMI attended the meeting on behalf of the Oblates, who are members of Jubilee USA. Learn more…
IMF Gold Sale Profits Benefit the World’s Poor October 1st, 2012
Jubilee USA Supporters Picket the IMF
The International Monetary Fund Executive Board has approved the final 2.7 billion dollars from recent gold sale profits to support the world’s poorest. The total gold sales windfall has now reached nearly 4 billion dollars to benefit the most vulnerable. One of the most powerful institutions in the world decided the right way because ordinary people cared – and acted.
At first, the IMF barely acknowledged the profit and assumed it could remain in their general reserves. Word leaked out about possible major renovations of the IMF office space in Washington, DC.
In response, Jubilee USA, of which the Oblates are a member, delivered tens of thousands of petitions and organized 60 global partners to push the IMF towards debt relief. At the end of February 2012, the IMF Board made a decision on the first distribution of 1.1 billion dollars after Jubilee, the ONE Campaign, ActionAid and Oxfam International met with the IMF staff.
These efforts pushed the IMF to approve the first 1.1 billion dollar distribution AND the second 2.7 billion dollar distribution to support concessional lending in the Poverty Reduction and Growth Trust (PRGT) and extend a 0% interest rate that will make this trust available for future generations beyond 2014. While many of us have concerns about IMF lending, this 0% extension on existing loans will mean real relief for millions of people and translate into direct support for low-income countries.
For more information about Jubilee USA, please visit their website – and get involved! Go to: www.jubileeusa.org
