Tag Archives: Promesa Bill

PUERTO RICO’S ‘AMERICAN’ PAYDAY LOANS: No Principal Or Interest For 47-Years, But Then Loans Balloon To Unrepayable Dimensions! CITIGROUP, GOLDMAN SACHS, MERRILL LYNCH (BANK OF AMERICA), MORGAN STANLEY, UBS, BANCO SANTANDER, Etc. Knew What They Were Doing & Knew How Desperate Puerto Rico Was For Financial Aid. Add In President Obama’s Evil, Political, Capitalistic PROMESA BILL Of June 30, 2016 (Establishes Federally Appointed Control Board To Run Puerto Rico’s Economy & Disenfranchises Puerto Rican Democracy – You Thought America Was In Favor Of ‘Democracy’, Didn’t You!), And Just Like Greece, Puerto Ricans Will Have To Borrow Another $1 Billion In 47-Years To Pay Off The Original $97-Million Loan And So On And So On. See Why Tabacco Always Rails Against ‘Deregulated Capitalism’! Yet THEY Always Tell Us How WONDERFUL CAPITALISM IS! And YOU Believed Them: P. T. Barnum’s ‘There’s A Sucker Born Every Minute!’ Democracy Is Wonderful For THEM, But Not For US! – DEREGULATED AMERICAN CAPITALISM AT ITS WORST!

AMY GOODMAN: “That means for 47 years, the banks agreed, you don’t pay us any principal, and you don’t pay us any interest for 47 years. And at the end of the 47 years, that $97 million becomes $1 billion that Puerto Rico has to pay back. That’s a thousand times what the original loan was. So, the banks had to know that there was no way that Puerto Rico could pay this back, but yet they continued to issue these bonds.

For just these capital appreciation bonds, these payday loans, just for a slice of them, banks got to make $221 million in fees. And they get to offload the risk.”
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“Meanwhile, even before President Obama has named members of the new control board, we’re beginning to learn just how bondholders are being protected and the people of Puerto Rico made to suffer. On June 29th, the government-owned Puerto Rico electric company announced its plan to raise by 28 percent the island’s electricity rates, which are already higher than any state but Hawaii. The extra money will be earmarked to pay debt service on up to $9.3 billion in new bonds the company, known as PREPA, plans to issue to replace its old debt. As part of the restructuring, the utility’s new directors will come largely from the U.S., and the new bonds will pay an astounding interest of 10 percent.”

JUAN GONZALEZ: “It’s a scandal that received almost no attention during the recent congressional debate over the so-called PROMESA bill, which will establish a federally appointed control board with sweeping powers to run Puerto Rico’s economy.” Continue reading

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