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.
"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