Supreme Court Blocks Puerto Rico Debt Restructuring Law

Jubilee USA

For Immediate Release

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Supreme Court Blocks Puerto Rico Debt Restructuring Law

Religious Development Coalition Releases Statement

WASHINGTON - The United States Supreme Court ruled 5-2 and upheld a lower court decision that prevents Puerto Rico's courts from restructuring some of its debt. The high court reaffirms the Puerto Rico Recovery Act is unconstitutional. The decision impacts about $20 billion of Puerto Rico's $72 billion in total debt. The House of Representatives passed legislation on June 9th (the Puerto Rico Oversight, Management and Economic Stability Act, HR 5728) to allow Puerto Rico to restructure all of its debt. The Senate is likely to vote on a version of that legislation before July 1st.

Eric LeCompte, the executive director of the religious development coalition Jubilee USA, releases the following statement:

"The only immediate options we have to deal with Puerto Rico's financial crisis is Congressional action or direct negotiations between the island's government and creditors. 

"This decision demonstrates how important it is that the Senate passes Puerto Rico debt legislation as soon as possible.
 
"The longer it takes to reach a solution, the worse it gets for Puerto Rico's people."

Read the Supreme Court's ruling
 

Read a timeline of Puerto Rico's debt crisis

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Jubilee USA Network is an alliance of more than 75 US organizations and 650 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org

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