Washington, DC - Puerto Rico religious leaders sent a letter to Puerto Rico Governor Jenniffer González-Colón to avoid paying out billions in debt that creditors are suing the Puerto Rico Electric Power Authority over.
Judge Laura Taylor Swain, who has jurisdiction on the island's bankruptcy proceedings, initially ruled that bondholders had $2.4 billion in secured claims but a superior court ruled that such claims amount to $8.5 billion.
“The level of repayment bondholders demand can only be achieved through the redeployment of committed federal aid, Commonwealth funds or future revenues, all of which are needed by the Puerto Rican people,” said Archbishop Roberto O. González Nieves, of the Archdiocese of San Juan, and Rev. Heriberto Martinez Rivera, General Secretary of the Puerto Rico Bible Society writing also in his capacity as coordinator of the Ecumenical and Interreligious Coalition on the Debt of Puerto Rico.
The US territory reels from a devastating debt crisis and a series of natural disasters including hurricanes and earthquakes. The Catholic Archbishop and Evangelical leader stressed that using public money to pay private debt would unravel Puerto Rico's bankruptcy agreement and the island's chance to tackle the 60% child poverty rate.
“These creditors are playing a game that abuses the people of Puerto Rico,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. "The creditors want to be bailed out by taking away social services from the people of Puerto Rico."
PREPA operates at a loss, which means that it does not have the funds to repay bondholders unless the central government of Puerto Rico transfers funds for that purpose or the utility increases user fees. The payments would also come at the expense of much needed investments on upgrading the electric infrastructure.
The letter reminds the governor that in 2025 Christians celebrate a Jubilee Year whose focus is on debt relief for the benefit of all people around the world.
"Puerto Rico's religious leaders are following the call of this special Jubilee Year," noted LeCompte who advises the Vatican and Catholic Bishops Conferences around the world. "These unjust debts must be cancelled and we must prioritize ending child poverty."
Read the full letter here.