For Immediate Release
Bondholders Sue to Block Puerto Rico Debt Moratorium
Religious Development Coalition Releases Statement
WASHINGTON - Owners of Puerto Rico government debt filed suit to undo a debt moratorium law passed by the island's government in April. Puerto Rico owes more than $70 billion in debt and nearly $2 billion is due July 1. The US Senate is debating a bill (the Puerto Rico Oversight, Management and Economic Stability Act, or "PROMESA") passed June 9 by the House of Representatives that restructures Puerto Rico's debt and blocks debt lawsuits against its government.
Eric LeCompte, executive director of the religious development coalition Jubilee USA, releases the following statement:
"I'm not surprised by this lawsuit. If the debt moratorium is thrown out and Congress doesn't intervene, we'll see a race to the courthouse. That's why it's so important that we set up a clear restructuring system that protects both creditors and Puerto Rico's people.
Read more about Puerto Rico's debt moratorium law
Read more about the Puerto Rico Oversight, Management and Economic Stability Act
Read a timeline of Puerto Rico's debt crisis
Jubilee USA Network is an alliance of more than 80 religious denominations and faith communities, human rights, environmental, labor, and community groups working for the definitive cancellation of crushing debts to fight poverty and injustice in Asia, Africa, and Latin America.