A coalition of Puerto Rico bondholders

Main Street Bondholders is a coalition of small bondholders http://mainstreetbondholders.org/solutions-for-puerto-rico/ from across America. We’ve worked hard, saved and played by the rules. We’ve invested our retirement, college and life savings into bonds backed by the full faith and credit of U.S. states, cities and territories.

Recently, Puerto Rico’s Governor, Alejandro Garcia Padilla has said that his government will refuse to honor its debts – even Puerto Rico’s constitutional debt. He has misled Congress about the ability of Puerto Rico to pay, and has ratcheted up spending, including paying millions of dollars to consultants and law firms who are well known for advising deadbeat sovereigns. This reckless behavior is a threat to our members – whether on the mainland or in Puerto Rico – who are invested in Puerto Rico’s bonds. Our retirement savings depends on the rule of law, and the Governor and his team have shown disregard for the law and for small bondholders who live in Puerto Rico and on the U.S. mainland.

Even more worrisome for all Americans, Governor Garcia Padilla’s disregard for the rule of law could create a precedent for other states and municipalities in America to act in the same way. Make no mistake: If Puerto Rico is allowed to default on its constitutional debt, other states and cities will try to follow suit, and no retirement account in America will be safe.

Main Street Bondholders will stand up for ordinary American citizens who have savings invested in Puerto Rico’s bonds, and who would be the victims of a default by Puerto Rico. Puerto Rico has options, and contrary to the claims of Governor Garcia Padilla, can fix its problems. We are committed to a policy process that returns Puerto Rico to sound financial management, respects the rule of law, and protects our retirement savings.

About Elías Gutiérrez

Profesor de la Escuela Graduada de Planificación de la Universidad de Puerto Rico desde 1966. Nació el 3 de julio de 1942 en la ciudad de Nueva York. En 1945 se traslado a Puerto Rico. En 1964 y 1965, respectivamente, obtuvo grados de Bachillerato y Maestría en Economía de la Universidad de Puerto Rico. En 1966, cursó estudios postgraduados en Planificación Económica en el Instituto de Estudios Sociales de La Haya, Holanda. Más tarde, en 1969 y 1973, respectivamente, obtuvo grados de Maestría y Doctorado en Economía y en Planificación Urbana y Regional de la Universidad de Cornell.
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One Response to A coalition of Puerto Rico bondholders

  1. Alex Vallecillo says:

    Very much in agreement. The resources and cash flow exists to cover the servicing and principal repayment coming due. The Puerto Rican Government must tighten its belt and encourage more growth in the economy,not just more of the same, via growth of jobs in government.

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