June, 13 2016, 11:45am EDT
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 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 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.
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