Oct. 30, 2019
WASHINGTON, D.C. – As the U.S. House Committee on Natural Resources convenes this afternoon for a second round of hearings to examine potential amendments to the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) federal law, the Power 4 Puerto Rico Coalition announced their support for the “U.S. Territorial Relief Act” (S. 1312 / H.R. 2526).
The Territorial Relief Act would: 1) Set up a voluntary mechanism for Puerto Rico to write down its unsecured debt, 2) compensate some bondholders in Puerto Rico for part of their losses and deny the vulture funds and other predatory lenders on Wall Street that same opportunity, as it protects pensions, and 3) provide for a comprehensive audit of the Island’s supposed $70 billion debt.
“PROMESA has not only been a failure, it has inflicted significant harm on the people of Puerto Rico. The brutal austerity measures taken by the unelected FOMB, its sweetheart deals with bondholders disguised as debt restructuring, and its insistence on anti-labor and other harmful policies have done enough damage to the people of Puerto Rico. It is high time for Congress to listen to the people and provide the kind of comprehensive debt relief included in the debt relief legislation sponsored by Senators Warren and Sanders, Congresswoman Velázquez and others,” said Erica González, Director of Power 4 Puerto Rico.
Federico A. de Jesús, Senior Advisor for Power 4 Puerto Rico, said: “For too long, Puerto Ricans have been given a false choice. We either choose an undemocratic colonial board or financial ruin. Unlike the failed PROMESA law, the U.S. Territorial Relief Act allows Puerto Rico to choose whether to participate in a comprehensive debt relief mechanism that would only be available to U.S. territories in the worst of circumstances, including unprecedented disasters like Hurricane Maria and its aftermath. Nevermore should Puerto Ricans have to choose between democracy, however limited it is, and debt relief. Under this bill we should be able to have both.”
“The Hispanic Federation strongly supports the U.S. Territorial Relief Act. It creates a clear path forward by providing long-needed tools to address comprehensive debt relief for Puerto Rico, which has suffered crippling austerity for too long, and is now in the process of trying to recover and rebuild from the worst natural disaster in the island’s history. This legislation would also provide compensation for individual bond holders and credit unions, some of whom lost their entire savings, while also providing a much needed independent audit of Puerto Rico’s public debt. Lastly, workers’ pensions would be protected under this plan, instead of vulture funds being the primary beneficiaries as is happening now under deals negotiated by the FOMB,” said Laura Esquivel, Director of National Advocacy for the Hispanic Federation, a member of the Power4PR coalition.
"The U.S. Territorial Relief Act is much-needed legislation that puts the Puerto Rican people before vulture fund profits, protects pensions and provides for the audit of the debt we have been demanding for years. PROMESA's punishing austerity has created misery in Puerto Rico and sent us backwards not forwards toward the sustainable economic recovery the island needs. The Territorial Relief Act is a step in the right direction-- it's time to audit the debt, cancel the illegal debt and empower Puerto Ricans to plan their path for the future," said Shirley Aldebol, VAMOS4PR Steering Committee member.
ABOUT POWER 4 PUERTO RICO
Power 4 Puerto Rico is a coalition of diaspora leaders and allied organizations that works in Washington and throughout the nation to pressure for policy changes that will help Puerto Rico and its displaced families.
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