02.10.2020

San Juan, Puerto Rico --  In response to the new debt adjustment deal announced by the Financial Management and Oversight Board (FOMB) on February 9th, the co-director of community dignity campaigns at Center for Popular Democracy, Julio Lopez Varona, shared the following statement:

“The FOMB’s latest proposal should be seen as an insult to the people of Puerto Rico. This agreement ensures lofty payments to hedge funds and corporations who paid cents on the dollar on bonds that were in some cases emitted illegally. These payments will be funded by cutting pensions and imposing even more taxes, despite the struggle to recover from ongoing earthquakes and the impact of Hurricane Maria. No payments to Wall Street should be made while Puerto Rico struggles to recover. It is imperative that we reject this agreement and demand the cancellation of the debt as the only way to a fair recovery.”

Despite Puerto Rico’s unsustainable debt undergoing renegotiating deals for the last few years, the FOMB’s proposal has barely reached a consensus on a plan that does more than benefit Wall Street and bondholders. The proposal would give bondholders more than a 70% rate of recovery, retrieving that by raising local taxes and sustaining an 8.5% cut to pensions. 

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