This weekend's Somos conference in New York is set to be an excellent time for political schmoozing and replete with opportunities to address issues plaguing the Latino community.
During the conference, supporters and lawmakers also intend to raise awareness of a bill that would shield the governments of Puerto Rico and other countries from hedge funds looking to make significant gains from their debt.
Puerto Rican state senator from The Bronx Gustavo Rivera said
He has "seen with horror" some of the problems affecting Puerto Rico as a result of its debt. I began to contemplate how this actually occurs.
This tremendous pressure on nations all across the world is a direct result of vulture funds in New York, according to Rivera. This month, Rivera reintroduced the bill.
60% of Low-Income Nations Are In Danger of Being Unable To Pay Their Debt
60% of low-income nations, according to the International Monetary Fund, are in danger of being unable to repay their loans. In order to attempt and get help from the governments and banks who have loaned them money, countries that are in debt difficulties start a debt restructuring process.
The legislation, which is sponsored by Rivera in the Senate and Maritza Davila in the Assembly, intends to shield nations with high levels of public debt from being exploited by New York-based financial organizations throughout the restructuring process. A fair framework for debt discussions between governments and those financial institutions would be established under the bill, should it be passed.
The bill's proponents contend that the lack of oversight has led to "bad-faith" debt negotiations, which further plunge those nations into economic despair —, particularly during economic crises. Private hedge funds purchased the inexpensive debt from Puerto Rico in the aftermath of Hurricane Maria in 2017, investing hundreds of millions of dollars and ultimately making a significant profit.
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