Community and union organizations say La Junta did not take advantage of opportunities that could have resulted in debt sustainability.
Over 40 organizations have come together to ask President Joe Biden for the elimination of the Fiscal Oversight and Management Board (La Junta).
The group, made up of community and union organizations, said in the letter that by having the last word on the island’s financial decisions, La Junta imposed austerity measures that have adversely affected Puerto Ricans.
“Enough is enough. We are concerned about our ability to survive in the place we call home. We write to you to urge you to support legislation that would immediately disband the Board and end its rule over the archipelago, and to request that you meet with us to build a plan to pave a better path forward that would allow Puerto Ricans to thrive,” the letter read.
The organizations also mentioned other effects of La Junta’s measures like, “increasing rates for tolls, water, and electricity—even though customers in Puerto Rico pay almost twice as much as customers in the US.”
Some of the organizations that are part of the group are sectors that this week have been protesting how the debt adjustment plan has affected them. An example of this is the Federation of Teachers of Puerto Rico, which along with other teachers’ organizations, held protests on Friday at La Fortaleza, the governor’s mansion, demanding a fair salary and retirement.
The letter mentioned that even the federal justice Laura Taylor Swain, that approved the debt adjustment plan, admitted that the plan only cuts the debt by 31%, far from the 85-95% economists estimated would be necessary for debt sustainability.
The organizations also criticized La Junta for not taking action to achieve debt sustainability.
“First, the Board proceeded with a debt restructuring process without a debt audit—a popular demand and one that if heeded, could have helped invalidate billions of dollars worth of bonds,” read the letter.
The organizations requested a meeting with Biden, in order to work together toward Puerto Rico’s recovery.
“Having lived through the implementation of PROMESA for the past five and a half years, we cannot in good faith believe it is creating the right path for us,” the letter said, referring to the law that established La Junta and was signed in 2016 by President Barack Obama, when Biden was vice president.
