In response to the updated text of Senator Krueger and Assemblymember Gonzalez-Rojas’s “champerty” bill S5623/A5290, Ben Grossman-Cohen, Director of Campaigns for Oxfam America, said:
“The new text of this sovereign debt bill makes modest progress that will benefit people facing dire poverty around the world, but ultimately offers only a band-aid where critical care is needed. Its passage may help stop vulture funds from the most egregious and indefensible abuse of New York’s laws, but leaves open the option for holdout creditors to use New York’s courts as leverage to put the screws to low- and middle-income countries by stripping out any obligation for creditors to participate in good faith to restructure unsustainable debts. If this is all the New York legislature does to improve the state’s governance of sovereign debt markets, New York will remain a forum for holdout creditors to demand better deals from low and middle-income countries than taxpayers. Legislators should pass this bill and continue their work to enact reforms such as the Sovereign Debt Stability Act to ensure that all private creditors governed under New York laws operate responsibly.”
Oxfam is a global organization that fights inequality to end poverty and injustice. We offer lifesaving support in times of crisis and advocate for economic justice, gender equality, and climate action. We demand equal rights and equal treatment so that everyone can thrive, not just survive. The future is equal. Join us at oxfamamerica.org.
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Notes to editors:
Download Oxfam’s media brief, “Refuge from Debt,” here.