• Wed. Nov 16th, 2022

New York will spend $ 65 million to save taxi drivers. Is it sufficient?

Several lenders, including the largest holder of medallion loans, the private equity firm Marblegate Asset Management, have already indicated that they would be prepared to reduce the loans to a range of about $ 250,000 to $ 300,000 in exchange for ‘a deposit.

On Tuesday, a Marblegate spokesperson applauded the plan. “This proposal recognizes that taxis are a vital part of New York City’s infrastructure and provides owner-drivers with significant relief that will help them restructure their loans – reducing their monthly payments and strengthening their economic prospects,” while stabilizing the industry, ”he said.

Aloysee Heredia Jarmoszuk, head of the city’s Taxi and Limousine Commission, which oversees the industry, told the press conference that she had already spoken with several lenders.

“I expect lenders to participate,” said Ms. Heredia Jarmoszuk, who was appointed by the mayor last year in part to address the crisis. “We believe this program is a win-win for everyone. “

Advocates for taxi drivers have said they too expect lenders to participate. But they said it was because the plan was a boon to the banks without helping drivers.

“All this plan is going to do is immediately put money in the hands of the lenders, while the risk remains on the necks of the borrowers,” said Bhairavi Desai, head of the Taxi Workers Alliance, which represents the drivers. “It’s absolutely a bailout – for lenders. It does nothing to help borrowers.

Several city council members also criticized the mayor’s plan, saying they were not consulted before his announcement. Stephen Levin, a Democratic adviser from Brooklyn who was part of a task force that investigated the issue last year, said the task force’s original plan would have brought much more relief at a lower cost.