United States Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy vowed to pass debt relief legislation, the New York Taxpayer and International Debt Crises Protection Act (A.2970, S.4747).
“The global COVID-19 pandemic and climate disaster have all laid bare just how interconnected the global economy has become today,” said Fahy. “New York is the world’s global financial hub — positioning us well to enact basic changes that will ensure debt relief for developing nations through investments in sustainable growth, infrastructure and more.”
Fahy, the lead Assembly sponsor of the bill, asserted that the initiative will benefit taxpayers and consumers in New York and the US as well as protect the state’s status as the world’s leading financial center. Constituents from across the State of New York descended on Albany on May 2nd to meet with lawmakers to urge passage of the Fahy and Hoylman-Sigal legislation.
“Our bill will help countries struggling to recover from challenges like climate change and COVID. At the same time, the bill will protect New York taxpayers and reduce the harmful impact of inflation,” said Hoylman-Sigal, the lead sponsor in the Senate of the New York Taxpayer and International Debt Crises Protection Act.
Developing countries owe more than 60 percent of their debt to private firms. Since 52% of the world’s private sector debt is governed by New York law, the New York Taxpayer and International Debt Crises Protection Act (A.2970, S.4747) ensures the private sector participates in relief agreements supported by the US Government.
“Most of the world’s countries continue to struggle with the pandemic and food crises,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “When developing countries, our trading partners, are in crises we face higher prices for eggs, flour, fuel and coffee.”
A large coalition of religious, development, labor and environmental organizations promotes the legislation. Supporters include major unions such as New York AFL-CIO, New York AFSCME and the New York State Public Employees Federation; churches such as the New York State Catholic Conference, the New York State Council of Churches, the United Church of Christ, the Methodist Church and the Presbyterian Church; development organizations such as Oxfam America; Bread for the World and the ONE Campaign; Puerto Rico’s Speaker of the House and religious leaders on the island; and environmental groups such as Catholic Climate Covenant and the Rivers & Mountains GreenFaith Circle.
“Major religious groups and unions support the legislation because it provides aid to people struggling with crises, protects our pensions and can help address inflation,” noted LeCompte who serves on United Nations debt expert groups.
Last week, the United Nations Independent Expert on Foreign Debt and Human Rights, Attiya Waris, issued a letter to the New York legislature highlighting how the legislation will advance human rights.