Maxine Waters (CA-35)

H.R. 1130, The JUBILEE Act

Summary

SECTION 1:  Short Title

The Justice and Understanding By International Loan Elimination and Equity Act of 2005

The JUBILEE Act of 2005

SECTION 2:  Findings

1.  Many poor countries have been struggling under the burden of international debts for many years.

2.  Many poor countries have debts that are odious because they were incurred by dictatorships that did not use the funds in ways that benefitted the population of the country.

3.  The international Jubilee coalitions have been working to raise awareness of the needs of these impoverished countries for full debt cancellation.

4.  The IMF has imposed onerous structural adjustment requirements on many poor countries as a condition of past loans and of participation in debt relief programs.

5.  Justice requires that these countries receive full cancellation of their debts.

SECTION 3:  Cancellation of Debt

Sec. 1626:  Cancellation of Debt

(a) In General -

1.  Cancellation of Debt

The Secretary of the Treasury shall commence immediate efforts within the Paris Club of Official Creditors, the IMF, the World Bank and other international financial institutions to accomplish the following:

A. Each international financial institution shall cancel all debts owed to the institution by eligible poor countries.  To the extent possible, each institution shall finance the debt cancellation using ongoing operations, procedures and accounts.

B. Waiting periods shall not exceed 1 month.

C. Poor countries shall be encouraged to allocate at least 20% of their national budgets to basic health, education and clean water.

2.  Establishment of Framework for Creditor Transparency

The Secretary of the Treasury shall commence immediate efforts to ensure that the IMF, the World Bank and other international financial institutions:

A. promote transparency; and

B. allow informed participation.

3.  The Treasury Department shall make available on its website the remarks of the US Executive Directors at Board meetings of the IMF, the World Bank and other international financial institutions about cancellation or reduction of debts owed to these institution.

4.  A One-time Report to Congress shall be submitted by the Comptroller General on the availability of the ongoing operations, procedures and accounts of the IMF, the World Bank and other international financial institutions for debt cancellation.

5. Annual Reports to Congress shall be submitted by the President on progress made on this section.

(b) Burden Sharing - The Secretary of the Treasury shall commence immediate efforts to ensure debt relief by other bilateral, multilateral and private creditors.

(c) Eligible Poor Countries

The term “eligible poor country” means the following 50 countries:

Angola, Bangladesh, Benin, Bolivia, Botswana, Burkino Faso, Burundi, Cambodia, Cameroon, Central African Republic, Chad, Cote d’Ivoire, Democratic Republic of Congo, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Jamaica, Kenya, Lao PDR, Liberia, Madagascar, Malawi, Mali, Mauritania, Morocco, Mozambique, Namibia, Nepal, Nicaragua, Niger, Nigeria, Peru, the Philippines, Republic of Congo, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, South Africa, Tanzania, Togo, Uganda, Vietnam, Yemen, and Zambia;

But not if -

1.  the government of the country has an excessive level of military expenditures;

2.  the government of the country has repeatedly provided support for acts of international terrorism;

3.  the government of the country is failing to cooperate on international narcotics control matters;

4.  the government of the country engages in a consistent pattern of gross violations of internationally recognized human rights; or

5. in the case of Haiti, the government of the country has not been elected through free and fair elections.

SECTION 4:  Prohibition of Structural Adjustment Programs

(a) The Secretary of the Treasury shall commence immediate efforts to ensure that debt cancellation is not conditioned on any agreement to implement policies that deepen poverty or degrade the environment, including any policy that -

1.  imposes user fees on primary education or primary health care;

2.  increases cost recovery from poor people to finance basic public services, such as education, health care or sanitation;

3.  increases costs to poor consumers for access to clean drinking water; or

4.  undermines internationally recognized worker rights.

(b) Annual Reports to Congress shall be submitted by the President on progress made on this section.