Senate Democrats have unveiled legislation to alleviate Puerto Rico’s debt woes, urging that the island be allowed to declare bankruptcy on all of its debt, The Hill reported today. The bill released yesterday would allow the U.S. territory to restructure its $72 billion in outstanding debt and create a fiscal oversight board for the island.
Democrats in the Senate said that they would introduce two bills today to give Puerto Rico broad powers to shed some of its $72 billion of bonds while also giving its public workers’ pensions priority over the bonds, the New York Times DealBook blog reported.
Puerto Rico’s House of Representatives approved a bill to allow the island’s main water utility to issue debt with a stronger repayment pledge, a step aimed at allowing the agency to raise money needed to avoid missing payments on other bonds, Bloomberg News reported yesterday.
Rep. Rob Bishop (R-Ohio), chair of the House Committee on Natural Resources, on Friday met with Puerto Rico Governor Alejandro Garcia Padilla to discuss the island's financial crisis ahead of legislative rescue plans expected from Congress in the coming weeks as huge debt payments loom, Reuters reported.
The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.
