Rally to Cancel Puerto Rico’s Debt – #CancelTheDebt

On March 13th, in the Southern District Federal Court of New York at 500 Pearl St. a group of citizens initially gathered inside the courtroom during the morning session where the Council representing the PROMESA Federal Oversight Management Board (FOMB) acknowledged that they currently face the dilemma of whether they will still hold their jobs past an established April 30th dateline by the Boston Circuit that determined that they were appointed illegal. In addition, they discussed how they intended to be more transparent in the hiring of firms who have conflicts of interest, after investigators discovered that there main consultant, McKinsey & Company, own interests in Puerto Rico bond holdings and was never publicly disclosed while been key in the decision making process for the negotiations.

The Fiscal Board was forced to act only after receiving backlash from union organizations, news outlets and the public. The Committee Council who represents the unions, which was designated as a fiduciary of the reconstructing deals stated, “We have been requesting for more transparency from the Council (representing the PROMESA Board) and the Board (FOMB) since the beginning of these proceedings, and yet we continue to become aware of negotiations after it’s a done deal…”.

Community members asked the Puerto Rico representative about his views and the response is simply dim.

Once the morning session was completed, the citizens along with organization leaders went outside to join the many other that gathered outside the Court house in support for the cancellation of the Puerto Rico. Prior to going outside, they spoke with the representative for the Puerto Rico Government. “Are you representing Ricardo Rosello and the Puerto Rico government?”, asked Nicole Torres Bruno, and the gentleman responded “Yes, I’m here as representative of the Puerto Rico government”, then he was asked “what is your view and what can we do as citizens?”, of which the gentleman provided a quite disappointing response, “nothing! there’s no point, I have no hope nor expectations. These are the same hedge funds and lawyers that beat Argentina…”.

Outside the crowd organized peacefully in an echo of chants from “Cancel The Debt… Cancel The Debt…” to “People before Profit…”.

Community leader Power Malu leads the chanting requesting Judge Swain to cancel the debt.

This all took place while Judge Laura Taylor Swain continued in one of many hearings for the restructuring of Puerto Rico’s debt. On an earlier hearing she was task the decision which culminated the COFINA deal that many suggest will be detrimental for Puerto Rico’s future. Unfortunately, the citizens of Puerto Rico have no direct representation in these hearings or the negotiations, despite having to deal with the full brunt of the final decisions made. Many who feel that the court hearings are merely a spectacle to show that there was some form of judicial process, while the real deals are happening behind closed doors serving merely special interests.

This particular hearing was intended determine the cancellation of $6 billion recognized by the FOMB to be illegal according to the Puerto Rico constitution, but instead no such decision was made. Now, face with the possibility of losing their jurisdiction to negotiate the remaining debt, the Council for the Board requested time from the Judge to submit a final plan and deal that would encompass the entire remaining debt, eluding that they already have a plan. The mere suggestion of the existence of a plan sparked the Committee Council to become outraged and demanded for transparency from the Board (FOMB) and their designated Council.

Judge Swain suggested to the Board’s Council to work along with the Committee Council so that there is more transparency, and did not make any decision on canceling the previously declared illegal $6 billion by Board. Instead, she provided the Board their new request for an extension to provide a new plan, and she set the next Omnibus hearing for April 24th, shortly before the active Board could potentially lose their current negotiating powers.

“One can suspect that the Board will use this time to close loose ends and attempt to make a negotiation that will favor the special interest that they represent as there are three of the current board members that have direct ties with banking institutions and were involved in the creation of much of the debt itself. The Boston Circuit has thrown a curve ball to their original objectives, or this could simply be another underline strategy of which intentions are only known behind closed doors”, said one of the community members who attended.

Press conference held by community leaders and organizers.

During rally there was a press conference where various community leaders addressed there concerns. Among them was Shirley Aldebol, Vice President of 32BJ SEIU and part of the steering committee of VAMOS4PR said, “We were surprised that the Board declared part of the debt illegal, but only because most of their actions and recommendations had continued favoring the banks that have profited unjustly from Puerto Rico’s debt. We have known for a while that this, and much more of the island’s public debt, was acquired illegally, and should be eliminated. If this illegal debt is not removed, a just recovery will be out of the reach of the island’s people for decades.

Happening in NY! Hundreds gather to demand that judge Swain stand with the people of #PuertoRico and declare 6 billion dollars of debt illegal. Lets put people over profit!! #CanceltheDebt pic.twitter.com/GImCGYsxUO

— Julio E. (@jlopezvarona) March 13, 2019

Eduardo Rosario, President of the NYC Chapter of the Labor Council for Latin American Advancement (LCLAA) said, “Those who have given the world every major economic crisis you can think of from Malaysia, to Greece, and Argentina, are the same ones who have manufactured the current crisis in Puerto Rico. The people of Puerto Rico are paying off this debt with their lives and should not be held responsible for the actions of predatory investors from Wall Street.”

Julio Varona López Co-director of Community Dignity Campaigns at the Center For Popular Democracy, VAMOS4PR steering committee member and coordinator at Hedge Clippers that said, “The Financial Oversight Management Board has already stated that portions of the Puerto Rican debt are illegal. Judge Swain should not allow any restructuring deal to be finalized before we fully understand how much of the debt is illegal. Anything less would mean that the people of Puerto Rico would be unjustly burdened with paying an illegal debt that would benefit banks over people.”

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