Press Release: 20th April, 2001. 

HIPC is dead: time for the Jubilee Framework - an independent, transparent and accountable process of debt arbitration. 

A report from the IMF/WB to b e presented to the Development Committee on the 21st April, is widely expected to admit to the failure of the HIPC (Heavily Indebted Poor Country) initiative to return the poorest, most indebted nations to sustainability. 

Ann Pettifor, co-founder of the international Jubilee 2000 movement said, "this report will confirm the stark predictions made by Jubilee 2000 when HIPC was launched in 1996. Namely that a creditor-led initiative will of course limit debt reduction to a level that suits creditors, not to a level that returns the debtor to sustainability. Creditors have been playing the role of plaintiff, judge and jury in the court of international debt for too long. 

"If poor countries are to have a line drawn under their unpayable and uncollectable debts; and if creditors are to be treated fairly, then we need to introduce a framework of justice into negotiations. Just as Enron's bankruptcy is managed by a framework of justice, transparency and accountability - so the insolvency of the poorest countries must be treated through a framework of justice, transparency and accountability. That is why we are delighted that the US Treasury, the IMF and other powerful voices are supporting our call for a Jubilee Framework - an independent, transparent and accountable process of arbitration between sovereign debtors and international creditors". 

End. 

Notes for Editors: Jubilee 2000, the international movement for the cancellation of the debts of the poorest countries by the year 2000, mobilized 24 million signatures behind the first-ever global petition, which called for the cancellation of debts "under a fair and transparent process" 

The Jubilee Framework (see our publication, Chapter 9/11?) proposes the establishment of an ad-hoc panel of arbitration, for the resolution of international debt crises. It would mimic the international ad-hoc panels used for the resolution of territorial disputes, or for the resolution of disputes between corporations and states (and managed by the International Chamber of Commerce). The panel would be made up of an equal no. of representatives from creditors, and from the debtor. The representatives would in turn appoint an arbiter, or chairperson, who would over see a just, transparent and accountable process. The framework is modeled on Chapter 9 of the US legal code, which provides for the insolvency of governmental organizations. Chapter 9 also gives citizens/taxpayers a legal "right to be heard" in any debt hearings, and in the final composition plan. 

There is a growing campaign in Argentina, led by leading opposition deputies Lisa Carrio and Mario Cafiero, for the adoption of the Jubilee Framework to resolve the stalemate in that country between the IMF (effectively representing international creditors) and the Argentine government. The Ecuadorean Jubilee 2000 campaign is promoting the Jubilee Framework in that country, and has mobilized widespread support.