Both Puerto Rico and the US Virgin Islands likely meet the Senate Bill's eligibility requirements.
Read the U.S. Territorial Relief Act of 2018
Eric LeCompte, Executive Director of Jubilee USA was recently highlighted in The Bond Buyer speaking on emergency relief funds, the bankruptcy process and recovery efforts in Puerto Rico. Read excerpt below and follow link to full article.
Puerto Rico Bond Holders May Have to Wait More Than Two Years
By Robert Slavin
Some observers, including Jubilee USA Network executive director Eric LeCompte and Council on Foreign Relation Senior Fellow Brad Setser, said the bankruptcy’s progress was reasonable considering the impact of Hurricanes Irma and Maria.
PROMESA “gave Puerto Rico some breathing space by allowing for a debt payment moratorium and preventing creditor litigation," LeCompte said. "PROMESA allowed Puerto Rico to default and made it disadvantageous for new predatory creditors to buy the debt. Finally, the legislation created a super bankruptcy process that is capable of restructuring all of Puerto Rico’s debt.”
LeCompte said PROMESA is the “first comprehensive debt restructuring process since the 1953 London Accord that restructured all of Germany’s debt.” He explained that by this he meant that it was the first time since the London Accord that both state-level and local government level debt was simultaneously restructured.
Read more here.
As Atlantic Region Braces For Another Damaging Hurricane Season, Concern Grows: Islands are unprepared as forecasters predict three hurricanes again
May 17, 2018
Efforts to reduce the country’s debt load in the wake of the hurricane appear to be moving backward, according to UN sovereign debt consultant and Jubilee USA Executive Director Eric LeCompte. He points out that the initial offer to pay 25 cents on the dollar to investors has now moved 40 cents as serious consideration is being given to so-called G.D.P.-linked bonds tied to the success or failure of the nation’s economic engine.
While efforts to prepare Puerto Rico, a US territory, require a response from the wealthiest nation on earth, smaller independent islands are especially exposed if a hurricane ravages the region again.
Moves are underway at the United Nations that could provide debt relief to independent islands such as Grenada, St Lucia, and Antigua if they are again stricken.
Recent public and private conversations have taken place at the United Nations Financing for Development Forum (FfDForum) in New York. The group is currently considering provisions for automatic debt relief and payment moratoriums when a disaster hits, as well as mandated debt restructuring. After the FfDForum focused on the measure, LeCompte says the G7, G20, International Monetary Fund or UN could call for its adoption and the creation of a legally binding process. Once approved at this level it could become legally binding, he said.
LeCompte expects the provisions to move forward in the next few months, just as the hurricane season could be approaching its historically most volatile period in the fall.
It's been six months since Hurricanes Maria and Irma devastated Puerto Rico and the US Virgin Islands. Because of your prayers and actions we continue to move forward debt relief and disaster aid for the islands. However, six months later we still need your prayers and action to address the humanitarian crisis on the islands. Today, many Puerto Ricans still don’t have reliable access to food, clean water, and other necessities.
Please join us March 23rd - 25th and pray for the people of Puerto Rico and the US Virgin Islands. Please sign-up your religious community and dedicate one prayer or petition during your religious service as we continue to act for those suffering on the islands. You can sign-up using the form below or contact firstname.lastname@example.org or 503-936-7553.
- Sample Jubilee Prayer for Puerto Rico and US Virgin Islands -
It has now been six months since Hurricanes Maria and Irma devastated our neighbors in Puerto Rico and the US Virgin Islands. In the midst of this continued crisis, we both grieve the devastation and loss of life that occurred, and recognize the ways in which you God are present even in these difficult times.
As we consider the many needs of the people of Puerto Rico and the Virgin Islands, we pray for mercy, comfort, and relief for our brothers and sisters in Puerto Rico at this time. We ask for restoration for all of your people on the islands.
As people of faith, we will continue to outstretch our arms in support and ask for the help that is beyond our mere means. We pray for the hearts and minds of those in power, that they too might see the needs of your people, and view Puerto Rico and the US Virgin Islands with eyes of compassion. We are standing with Puerto Rico and the US Virgin Islands.
Thank you, oh God of many names, for the hope that leads us onward. Amen.
Participating Congregations include:
Holy Spirit Missionary Sisters Chicago, IL
Congregation Gates of Heaven Schenectady, NY
Epworth United Methodist Berkeley, CA
Skyline Community Church Oakland, CA
Our Lady Queen of Peace Arlington, VA
First Presbyterian Church Portland, OR
University Lutheran Church Mason, MI
University Lutheran Church Gainesville, FL
Dominican Sisters Great Bend, KS
B'nai Sholom Albany, NY
Congregation Beth Emeth Albany, NY
Congregation Berith Sholom Troy, NY
Temple Sinai Saratoga Albany, NY
Notre Dame of Dallas Dallas, TX
Notre Dame of Elm Gove Elm Grove, WI
Our Lady of Good Counsel Mankato, MN
St. Mary of the Pines Chatawa, MS
Sancta Maria in Ripa St. Louis, MO
St. Joseph of the Capuchin Order Detroit, MI
Ascension Lutheran Thousand Oaks, CA
Sisters of the Order of St. Benedict St. Joseph, MN
Sisters of St. Joseph of Chambery West Hartford, CT
Trinity Episcopal Church Lewiston, ME
St. Anne's Catholic Church Birkenhead, England
St. Columba Catholic Church Oakland, CA
Saint Robert's Catholic Church San Bruno, CA
Eric LeCompte, Executive Director of Jubilee USA was recently featured in The Wall Street Journal speaking on Puerto Rico debt. Read excerpt below and follow link to full article.
Why Puerto Rico is Proving to Be 2018’s Top Bond Investment
By: Matt Wirz
“The construction boom after the hurricane is fueling an increase in bond prices, but that’s going to be short lived,” said Eric LeCompte, executive director of Jubilee USA Network, one of the activist groups seeking debt forgiveness for Puerto Rico. “We should be focused on long-term economic growth for Puerto Rico and that includes debt relief.”
Read more here.
Eric LeCompte, Executive Director of Jubilee USA was recently featured in America, the Jesuit Review speaking on Puerto Rico. Read excerpt below and follow link to full article.
Puerto Rico to receive $11 billion in disaster aid. Advocates warn it won't be enough.
By: J.D. Long-García
Eric LeCompte, executive director of Jubilee USA Network has serious doubts. “Half a million people in Puerto Rico are still without power,” he said.
“There’s a lot of hopelessness across the island,” Mr. LeCompte said, adding that hundreds of thousands have left Puerto Rico since the hurricane. According to Mr. LeCompte, there has been a surge in suicide rates. While Mr. LeCompte applauded the approval of disaster relief, he added that “the work of Congress is not over yet.”
Even before the hurricane, half of the children in Puerto Rico lived in poverty, according to Mr. LeCompte.
“The suffering was already great on the island with hundreds of schools closed,” he said. “Austerity was impacting health care and social services. Because of the debt crisis, Puerto Rico was ill-prepared to deal with hurricanes.”
Mr. LeCompte noted that many Americans still do not realize Puerto Ricans are U.S. citizens. Still, he expects the financial oversight board of Puerto Rico to recommend a five-year suspension of debt payments in the coming weeks.
“There is also a ‘super bankruptcy’ process taking place that Congress passed as a part of legislation,” Mr. LeCompte said. “That bankruptcy process will need to cut about 80 to 90 percent of the debt if Puerto Rico wants to see future economic growth.”
The island’s government estimates Puerto Rico needs $90 billion in aid in the aftermath of the hurricanes, Mr. LeCompte said. The U.S. Virgin Islands have requested more than $7.5 billion.
“We will need more disaster aid bills from Congress in the coming months,” he said. The current budget proposal also falls short of requests from California, Texas and Florida, according to Mr. LeCompte.
Read more here.
"The human suffering in Puerto Rico and the US Virgin Islands continues, so I'm happy Republican and Democratic leadership could agree on disaster relief and healthcare funding for the poor," noted Jubilee USA Director, Eric LeCompte whose organization generated thousands of e-mails and phone calls to Congress ahead of the vote. "The work of Congress is not over yet. The aid package falls short of what the islands need and Congress will need to approve more disaster relief in the months ahead."
The spending bill includes more than $11 billion in recovery aid for Puerto Rico and the US Virgin Islands. More than $2 billion will be available to rebuild Puerto Rico's power grid. Moody's rating agency and the US Territory Governments estimate that more than $100 billion is needed to fully fund recovery and rebuilding efforts.
The law also includes money for Puerto Rico's Medicaid program that serves poor populations. Until Congress acted, Puerto Rico's Medicaid funding was weeks away from running out.
"We applaud Congress for moving forward the Medicaid funding for Puerto Rico," said LeCompte. "This program is critical for anti-poverty efforts and will generate billions of dollars for Puerto Rico's economy."
Religious leaders in Puerto Rico and across the United States have advocated for Medicaid financing with Congress and the White House for more than two years.
January 19, 2018
Government Shutdown Solutions Could Leave Out Disaster Aid for Puerto Rico
Economists Say Island Needs Debt Relief and Rebuilding Funds
Washington DC – As the Senate and White House struggle to avert a government shutdown, US disaster victims from Puerto Rico to Texas worry a deal on relief and recovery aid will continue to be delayed. Moody’s rating agency estimates that Puerto Rico alone needs an upwards of $90 billion in aid to rebuild.
“Congress has failed to deliver recovery and relief aid to millions of US citizens affected by natural disasters in the last year,” stated Eric LeCompte, executive director of the religious development group, Jubilee USA. “We are really concerned for Puerto Rico and the US Virgin Islands. The islands were already dealing with high child poverty rates, developing world conditions and financial crises well before the hurricanes struck.”
In the last days of 2017, the US House of Representatives voted for an $81 billion dollar aid package for Texas, Florida, California, Puerto Rico and the US Virgin Islands. The House Bill fell short of the requests made by the Governors of the affected areas. As of Friday morning, Senators were still trying to negotiate some relief aid funding for Puerto Rico.
“It’s absolutely essential that Congress moves forward a recovery package as soon as possible. Aid must be enough to fully fund Puerto Rico and the US Virgin Islands to rebuild to withstand the next storm,” said LeCompte who met with Republican and Democratic leadership on moving forward a recovery package. Since September, LeCompte’s organization generated thousands of petitions, phone calls and e-mails to Congress and the White House to provide relief for the US Territories through a series of action alerts.
As Congress wrestles with a recovery package for the beleaguered islands, Puerto Rico’s oversight board and Governor are preparing to release a new post hurricane economic plan. Before the hurricanes hit, Puerto Rico was entangled in a congressionally crafted bankruptcy process to deal with $72 billion in debt. The new fiscal plan will state how debt will be dealt with in a post hurricane Puerto Rico.
“The new plan for Puerto Rico must address the devastation caused by the hurricane and the problems that caused the prior deterioration of the economy,” a group of notable economists reflected in an open statement they released on Friday. Signers included: Antonio Weiss, former Counselor to the US Treasury Secretary; Nobel Prize winning economist, Joseph Stiglitz; Simon Johnson, former International Monetary Fund chief economist; Mario Marazzi Santiago of the Puerto Rican Institute of Statistics; former top United Nations adviser, Jeffrey Sachs; Jason Furman, former Chairman of the Council of Economic Advisers; and Gene Sperling, former director of the National Economic Council.
The economist release entitled, “A Fiscal Plan for Puerto Rico,” calls for debt relief and substantial aid for Puerto Rico. The statement comes as Congress, the White House and the Island’s Governor and oversight board make decisions around the fate of the 3.5 million US citizens who call Puerto Rico home.
“The new final fiscal plan cannot allow a penny to be paid for debt until Puerto Rico sees positive economic recovery and is fully funded to be able to rebuild to withstand the next storm,” LeCompte noted. “Beyond the significant debt relief needed, Puerto Rico needs to stop all debt payments for at least five years.”
For nearly two years before the hurricanes struck, religious groups in Puerto Rico and the United States were advocating various solutions to deal with the growing financial crisis and high poverty rates. Shortly before Christmas, religious groups gathered in a Congress building to call for relief and aid. Supporting and participating groups included the United States Conference of Catholic Bishops, United Church of Christ, Catholic Charities USA, Catholic Charities of the Archdiocese of New York, Franciscan Action Network, the National Association of Evangelicals, Muslim Public Affairs Council and Islamic Relief.
During the prayer service, Puerto Rico's Archbishop Roberto González Nieves reflected, "Puerto Rico desperately needs a complete debt relief, funding for rebuilding, and equal access to Medicare, Medicaid and child tax benefit funding. [...] Today we pray with the persistence and tenacity of the widow of the gospel; we pray full of hope that the miracle of compassion, openness toward and solidarity with Puerto Rico may come true."
Read the economist statement, “A Fiscal Plan for Puerto Rico"
View Jubilee USA’s most recent action alert
Contact: Lydia C. Andrews, Deputy Director
As Congress works to avoid another government shutdown, a crucial part of the debate is the funding for relief and recovery aid desperately needed for disaster victims in Puerto Rico, US Virgin Islands, Florida, Texas and California.
Republican and Democratic leadership have told Jubilee USA that your phone calls and messages for Puerto Rico and the US Virgin Islands are making a BIG difference. Please act now.
Hurricane victims in Puerto and the US Virgin Islands are suffering as Congress debates a government shutdown. Please send a message to your Senators and Representative and tell them Puerto Rico and the Virgin Islands needs recovery funding to rebuild to withstand the next storm. Let Congress know that Puerto Rico needs debt relief. Tell them that US Citizens living in Puerto Rico and the Virgin Islands should be able to receive the same level of access to Medicaid, Medicare and child tax benefits that citizens can access who live in the States.
Because of the pressure we put on Congress in recent weeks, we stripped the final Congress tax package of an "excise" tax on Puerto Rico and the US Virgin Islands. Our collective action makes a big difference.
Send a message to Congress now. Puerto Rico and the US Virgin Islands need recovery funding to rebuild to withstand the next storm. Tell them Puerto Rico needs debt relief. US Citizens living in Puerto Rico should be able to access Medicaid, Medicare and child tax benefits that citizens can access who live in the States.
At the end of 2017, Jubilee USA and our partners hosted a prayer service in Congress for Puerto Rico. Supporting and participating groups included the United States Conference of Catholic Bishops, United Church of Christ, Catholic Charities USA, Catholic Charities of the Archdiocese of New York, Franciscan Action Network, the National Association of Evangelicals, Muslim Public Affairs Council and Islamic Relief. During the prayer service, Puerto Rico's Archbishop Roberto González Nieves reflected, "Puerto Rico desperately needs a complete debt relief, funding for rebuilding, and equal access to Medicare, Medicaid and child tax benefit funding. [...] Today we pray with the persistence and tenacity of the widow of the gospel; we pray full of hope that the miracle of compassion, openness toward and solidarity with Puerto Rico may come true."
Your calls and messages are urgently needed as Jubilee USA and our partners continue to walk the halls of Congress. Together we can win the aid and relief Puerto Rico and the Virgin Islands desperately needs.
Thanks for taking action,