Written by Jubilee USA Network   

The International Monetary Fund (IMF) cut growth projections in its report on the global economy. The World Economic Outlook report, released ahead of the IMF/World Bank Spring Meetings, projects global growth to slow to 3.2 percent, lower than previous projections. The Fund calls for "a broad-based policy response to raise growth and manage vulnerabilities."

"Developing countries and emerging markets are still struggling in the wake of the 2008 financial crisis," said Eric LeCompte, a United Nations debt and tax expert and the executive director of the religious development coalition Jubilee USA. "Vulnerable communities are suffering the most and we're concerned with preventing the next crisis."

LeCompte joined Jean Paul Adam, Minister of Finance of the Seychelles, IMF staff and civil society organizations at a panel to specifically address economic vulnerabilities during the IMF meetings. The Seychelles is an island nation in Africa. Of the thirty most indebted countries in the world, nine are islands and are vulnerable to a range of economic and environmental shocks.

The IMF meetings are also focused on debt restructuring issues amid growing debt crises in Puerto Rico, Africa and among Small Island Developing States (SIDS). In its World Economic Outlook report, the Fund urges action on rising debt levels in low-income and emerging economies.

"Behind closed doors the Fund leadership is focusing on how to make debt more sustainable and how we can insulate vulnerable economies from shocks," noted LeCompte. "Action is needed to improve global debt restructuring and establish a global bankruptcy process."

www.jubileeusa.org