PROMESA "Super Chapter 9" is Still a Bailout on the Backs of Bondholders Across America

WASHINGTON, April 15, 2016 /PRNewswire-USNewswire/ -- In response to reported attempts by Congressional leadership to mislead House Republicans into thinking that fixing the PROMESA bailout legislation currently under consideration by the House Committee on Natural Resources by simply adding language that "guards" against the immediate use of taxpayer rescue funds in Puerto Rico, the Center for Individual Freedom (CFIF) released the following statement:

"Members of Congress should not be fooled by leadership's attempts to persuade them that this bill is not still a bailout. As has been clear since the beginning, this bill is a bailout of Puerto Rico's government pension system on the backs of the life savings of Puerto Rico bondholders across America," said CFIF Senior Vice President of Legal and Public Affairs Timothy Lee. "Members should also not be fooled -certain hedge funds, who stand to benefit greatly from an undermining of Puerto Rico's Constitution, have thrown their support behind this measure, which will do absolutely nothing to diminish the glaring defects of this overall bill.

"Simply put, any legislative solution that Congress comes up with must respect the clear-cut laws with which Puerto Rico's bondholders were sold their bonds and uphold the debt hierarchy laid out in Puerto Rico's constitution."

SOURCE Center for Individual Freedom

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