The constantly shifting political dynamics underlying congressional efforts to help Puerto Rico resolve its financial crisis were still in flux yesterday, as the main lawmaker shepherding the measure through the House continued trying to persuade Republican members to get on board, according to MorningConsult.com. A vote scheduled for today in the House Natural Resources Committee was postponed as it became apparent that members still had questions about the evolving measure. After a brief committee session for members to submit opening statements, Chairman Rob Bishop (R-Utah) adjourned. Rep. Raul Grijalva (D-Ariz.), the committee’s ranking member, told reporters immediately after the meeting that the talks on the legislation are continuing. Both he and Resident Commissioner Pedro Pierluisi, Puerto Rico’s representative in Congress, hope the vote can take place next week. Earlier yesterday, Bishop huddled behind closed doors with members of the conservative Republican Study Committee after a hearing on the Puerto Rico issue. Several Republican members of the Natural Resources panel, some of whom sit on the Republican Study Committee, indicated they remained skeptical of the legislation. Read more.
In related news, creditors of Puerto Rico's Government Development Bank yesterday withdrew a lawsuit that sought to prevent a run on the bank ahead of a $422 million debt payment due on May 1, Reuters reported. Hedge funds including Brigade Capital Management and Claren Road Asset Management, which hold some of GDB's $3.75 billion in debt, said that the lawsuit had no purpose now that Puerto Rico Governor Alejandro Garcia Padilla has declared a fiscal emergency at the bank. The emergency declaration, issued on Saturday, prevents GDB from lending and paying certain debts, and blocks depositors from withdrawing any money not required to fund essential services. This is essentially what the creditors had sought in their lawsuit, which was filed four days before Garcia Padilla's declaration. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
