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Category: Press Releases
Bondholders Sue to Block Puerto Rico Debt Moratorium
Religious Development Coalition Releases Statement
| FOR IMMEDIATE RELEASE
June 21, 2016 |
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Bondholders Sue to Block Puerto Rico Debt Moratorium
Religious Development Coalition Releases Statement
Washington DC - 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
Jubilee USA Network is an alliance of more than 75 US organizations and 550 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 has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org
To arrange interviews, contact:
Greg Williams, Communications Director
greg(at)jubileeusa.org / (o) (202) 783-3566 x101 (m) (443) 854-1405
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