Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

For Immediate Release

Press Release

Puerto Rico Defaults on Debt to Pay Public Services

Religious Development Group Releases Statement
WASHINGTON -

The government of Puerto Rico says it will default on most of $422 million in debt payments due. This would be the third time Puerto Rico missed debt payments in the past 9 months and would be its largest default to date. Puerto Rico Governor Alejandro García Padilla announced the missed payments May 1 in a televised address and implored Congress to give Puerto Rico legal tools to restructure its debt.  

Eric LeCompte, executive director of the religious development coalition Jubilee USA, releases the below statement. LeCompte serves on debt expert groups to the United Nations and testified to Congress on Puerto Rico's financial crisis:

"
While this default is significant, all eyes are now on the island's July payment. The July payment is for bonds protected in the constitution. Some of the holders of this kind of debt argue they should be paid before other creditors, pensions or social services.

"Congress could have prevented the May default. ‎With even greater consequences around a July default, Congress needs to act quickly.

"Congress needs to act. Puerto Rico needs to bring its debt back to payable levels. Any solution must respect the rights of the creditors, Puerto Rico's government and the needs of the island's people.

"We remain concerned how this fiscal crisis is impacting the poor and vulnerable. 57 percent of Puerto Rico's kids live in poverty. The most important cost to be concerned about is the human cost of this crisis."

Read Jubilee USA's letter to Congress recommending 6 improvements to the Puerto Rico Oversight, Management and Economic Stablity Act (PROMESA)

Read more about the default

Read a timeline of the crisis in Puerto Rico

###

Jubilee USA Network is an interfaith, non-profit alliance of religious, development and advocacy organizations. We are 75 U.S. institutions and more than 750 faith groups working across the United States and around the globe. We address the structural causes of poverty and inequality in our communities and countries around the world.

Coalition Slams UN Food Summit for Peddling 'Corporate-Led False Solutions' to Hunger

"The U.N. has finally made it clear what 'multilateralism' is all about—paying lip service to the people while skewing priorities for the interests of imperialists and monopoly capitalists."

Jake Johnson ·


'Political Malpractice': House Democrats' Bill Wouldn't Add Dental to Medicare Until 2028

"I don't want to see it drawn out to as far as the House has proposed," Sen. Bernie Sanders said during a recent press call.

Jake Johnson ·


'How Many More Deaths Must It Take?' Barbados Leader Rips Rich Nations in Fierce UN Speech

"How many more variants of Covid-19 must arrive, how many more, before a worldwide plan for vaccinations will be implemented?"

Jake Johnson ·


To Avert Debt Ceiling Calamity, Democrats Urged to Finally Kill the Filibuster

"The solution is to blow up the filibuster at least for debt limit votes, just as Mitch blew it up to pack the Supreme Court for his big donors."

Jake Johnson ·


Biden Decries 'Outrageous' Treatment of Haitians at Border—But Keeps Deporting Them

"I'm glad to see President Biden speak out about the mistreatment of Haitian asylum-seekers. But his administration's use of Title 42 to deny them the right to make an asylum claim is a much bigger issue."

Jessica Corbett ·

Support our work.

We are independent, non-profit, advertising-free and 100% reader supported.

Subscribe to our newsletter.

Quality journalism. Progressive values.
Direct to your inbox.

Subscribe to our Newsletter.


Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit | Privacy Policy
Common Dreams Logo