You are probably wondering how could any organisation or financial institute make such ridiculous demands? Well, a group of billionaire hedge fund managers requested that Puerto Rico must lay off teachers and close schools so that they can repay their debt!
The “distressed debt” specialists, also know as vulture funds accused Puerto Rico of spending too much on education! What is more important, a hedge fund losing some money or a country neglecting its youth to pay off its debt?
According to the theguardian.com
The hedge funds called for Puerto Rico to avoid financial default – and repay its debts – by collecting more taxes, selling $4bn worth of public buildings and drastically cutting public spending, particularly on education.
The group of 34 hedge funds hired former International Monetary Fund (IMF) economists to come up with a solution to Puerto Rico’s debt crisis after the island’s governor declared its $72bn debt “unpayable” – paving the way for bankruptcy.
Luis Gallardo, majority municipal legislator for Aguas Buenas, said the hedge fund-commissioned report was a “typically IMF recipe for radical austerity”.
“They are proposing teacher layoffs, cuts in higher education and health benefits, as well as increased taxes. These proposals have been a disaster for Latin America and would be so for Puerto Rico. Sure, Puerto Rico could pay its debt, but at what cost? We are literally cutting off our own limbs just to stay afloat.
It was also reported that the island’s government has already closed more than a 100 schools this year.
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