Bondholder Group Bonistas del Patio Applauds Promesa
SAN JUAN — Bonistas del Patio Inc. (“Backyard Bondholders”), a self-funded nonprofit organization of Puerto Rico bondholders, said Friday that it believes the Puerto Rico Oversight, Management and Economic Stability Act (Promesa) and the creation of a fiscal oversight board is the “only way to provide the order and confidence required to move Puerto Rico forward.”
The group comprises more than 60,000 local bondholders with the objective to have “our investments and savings repaid in a manner that is fair and orderly,” it says, explaining that “while our financial stake is high, we account for approximately $15 billion in debt, more important is our personal stake. Our members work, pay taxes and live in Puerto Rico with our families.”
“PROMESA provides the political and fiscal discipline needed for our local government by balancing the needs of citizens and bondholders while providing transparency in restructuring our debt and reinstating order. Opposition to this measure comes from two major sources: local politicians and hedge or vulture funds,” group Executive Director Jorge Irizarry said in Friday’s release.
Irizarry said the politicians who have said Promesa is unnecessary for reform are “the same politicians whose poor financial management and utter lack of transparency has led to the current crisis.”
The fiscal oversight board provides a mechanism for “voluntary, reasonable and transparent negotiations,” Irizarry said, adding that hedge funds and certain creditors oppose PROMESA measures that “block them from seeking immediate payment through the courts.”
The creditor group says the bill provides the “middle ground of protecting Puerto Rican interests while paying off our debts,” and that opposing it is “to choose chaos over reform, economic decimation over survival and unfounded ideological excuses over the lives of 3.4 million American citizens.”