WASHINGTON, Sept. 8, 2015 /PRNewswire-HISPANIC PR WIRE/ — Main Street Bondholders Coalition, a project of the 60 Plus Association, America’s largest center-right seniors organization representing more than 7.2 million older Americans, today launches a paid advertising campaign in Washington and Puerto Rico to highlight Governor Alejandro Garcia Padilla’s plan to violate Puerto Rico’s constitution at the expense of small bondholders.
“Governor Garcia Padilla’s plan – to declare debts un-payable and then attack bondholders by calling them ‘vultures’ – is both unjust and unconstitutional. Our coalition includes Puerto Rican residents and mainland seniors living on fixed incomes, who staked their retirement in bonds backed by Puerto Rico’s full faith and credit. Congress must oppose the Governor and his team’s reckless plan that disregards the rule of law and devastates the lives of these small investors,” said Matthew Kandrach, Vice-President for 60 Plus.
Governor Garcia Padilla’s plan is so radical and unprecedented that members of his own political party are speaking out against it:
- Nadal Power, Chairman of Puerto Rican Senate Committee on Treasury and Public Finance: “We have to respect what the Constitution says and to do otherwise would take away a lot of credibility, not only the word of Puerto Rico, but compliance with the supreme law.”
- Eduardo Bhatia, President of the Senate of Puerto Rico: “Puerto Rico has not been disciplined. We must restore confidence. We have to reduce government spending.”
Added Kandrach, “Puerto Rico can fix its financial problems, but any solution must be built on the cornerstone of genuine fiscal reform, not empty rhetoric and punishing investors. The Governor and his circle of advisors, who are the same bunch representing deadbeat sovereigns like Argentina, have chosen to manufacture a crisis in order to get Washington’s help in their plan to stiff creditors. Congress must not allow that to happen.
“Puerto Rico would benefit from a fiscal control board, just like the District of Columbia had in the 1990s when it faced financial crisis. Congress must also oppose the Governor’s plan to restructure Puerto Rico’s constitutional bonds. Allowing him to do so would set a terrible precedent, and open a Pandora’s Box of other state defaults. No retirement account in America would be safe.”
Main Street Bondholders Coalition is a project of the 60 Plus Association that is made up of small bondholders from across America who are committed to a policy process that returns Puerto Rico to sound financial management, respects the rule of law, and protects their retirement savings.
Contact: Gerry Scimeca