SAN JUAN, Puerto Rico (AP) — Democratic presidential candidate Bernie Sanders warned Monday of a humanitarian crisis in Puerto Rico, calling on the U.S. government to support a debt restructure in the territory as he blasted what he called "vulture" funds for demanding austere measures.
Addressing a crowd in San Juan ahead of Puerto Rico's June 5 primary, Sanders called upon the U.S. Federal Reserve to authorize emergency loans and use its authority to allow for a restructuring.
The Vermont senator also said hedge funds that hold a significant portion of the island's $70 billion public debt should take a "massive haircut" as the island continues to default on multimillion-dollar bond payments.
"In the midst of this terrible human and economic crisis, it is morally repugnant that we are seeing vulture funds on Wall Street ... demanding that Puerto Rico fire teachers, close schools, cut pensions and abolish the minimum wage," he said to a wave of cheers.
The island is mired in a decade-long economic crisis and smothered by a public debt load that the governor has said is unpayable and needs restructuring.
Sanders said he would alleviate Puerto Rico's economic woes in part by rebuilding local infrastructure to create jobs and establish a clean economy by harnessing the island's solar and wind resources.
