Bondholders Sue to Block Puerto Rico Debt Moratorium

Jubilee USA

For Immediate Release

Tuesday, June 21, 2016 - 2:30pm
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Jubilee USA Network
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Phone: 202.783.3566
Email: coord(at)jubileeusa.org

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.

"The Senate should act quickly and pass legislation that addresses Puerto Rico's debt crisis. PROMESA offers an orderly process for resolving the debt and accountability measures to make sure Puerto Rico isn't asking for help again five years from now.
 
"Ultimately, we need a solution that is fair to all parties, including Puerto Rico's people. The people impacted the most by this crisis played no role in creating it."

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

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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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