Puerto Rico legislators are warning that they will seek amendments to a bill that would create an independent fiscal control board as the U.S. territory pushes to restructure a portion of its $72 billion of public debt before the government runs out of money, the Associated Press reported yesterday. The territory’s lawmakers said on Monday that they expect to hold five days of public hearings before voting on the 71-page measure, submitted late last week. Most of the debate will likely focus on what kind of power and reach the board should have as concerns grow about whether the government would lose significant control over its finances and operations. "This project is an admission that the markets and U.S. institutions have absolutely no confidence in this government," said Sen. Maria de Lourdes Santiago. "This board would not supervise. It would govern." The proposed board is part of a five-year fiscal reform plan aimed at strengthening the island's economy, which has tanked for nearly a decade amid concern that public agencies might soon go bankrupt. Read more.
The Senate Energy and Natural Resources Committee will hold a hearing on Thursday at 10 a.m. ET to receive testimony on Puerto Rico's economy, debt, and options for Congress moving forward. Read more.
For the latest news and analysis of Puerto Rico’s financial crisis, be sure to visit ABI’s “Puerto Rico in Distress” webpage.
