International debt and the climate crisis

On Tuesday, May 2, representatives of various faiths will join charities and labor organizations for a rally at the Capitol in support of a single bill that promises to address climate change, inflation, high food costs, and the reality that developing countries need debt relief as quickly as possible. 

Sponsored by Assemblymenber Patricia Fahy, the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970) is intended to “promote effective and orderly sovereign debt restructuring for countries suffering from the pandemic, health, and economic crises, achieve equitable burden-sharing between public and private creditors, address economic and supply chain shocks, prevent financial system disruption, and protect NY taxpayers.”
 
The organization Debt Justice explains the climate change connection this way:
 
The economic shock of the pandemic has plunged many lower income countries further into a debt crisis that has been building for the last decade. Many of the same countries are experiencing the devastating reality of the climate crisis despite being the least responsible. From tropical storms and droughts, to rising sea levels and increasing temperatures, the impacts are already causing severe destruction. 
 
Countries need resources to address and prevent the impacts of the climate crisis now, but many are trapped in repaying vast sums into the pockets of creditors every year, undermining their ability to act. At the same time, the failure of wealthy polluters to pay up for the damage they have caused is forcing countries deeper into debt to pay for a crisis created by wealthy governments and corporations. Together, this creates a vicious circle that can be impossible to escape.
 
Jubilee USA, a coalition of religious, development and advocacy groups that has won more than $130 billion in debt relief for the world’s poorest economies, issued a statement in which it quotes Assemblymember Fahy: 

“This legislation will help resolve debt in developing countries more easily, many of whom are reeling from the effects of the COVID-19 pandemic and Ukraine invasion,” said Fahy. “I’m proud to introduce this legislation and require that private creditors join in debt relief funding deals for developing countries to resolve financial and debt crises. While you might not know it, most of the world’s private debt is arbitrated here in New York, and this legislation will provide much needed debt relief across the board.”

Over 50% of the world's debt held by private creditors is contracted under New York State law. Fahy's bill ensures private creditors participate in debt relief initiatives at the same level as the US government, other governments and other creditors.

For more information or register click here. If you cannot come for the whole day, please try to attend the rally at the Million Dollar Staircase at 1:30 p.m.