After months of waiting for the U.S. Congress to act as Puerto Rico's economic crisis progressively worsened, the Caribbean island is on the verge of securing a relief plan from Washington, D.C., aimed at helping it address a hobbling $70 billion debt, Reuters reported yesterday. The Senate is set to launch a debate on Wednesday for legislation establishing a federal oversight board that would be in charge of restructuring the U.S. territory's debt where one out of every three dollars it earns in revenue is used to pay creditors, according to the U.S. Treasury. The measure is identical to the plan passed by the House of Representatives earlier this month, as Congress tries to send it to President Barack Obama to sign into law by July 1. That is when Puerto Rico faces a potential default on a chunk of its debt if it cannot make a $1.9 billion payment. As early as Wednesday, the Senate could cast a procedural vote on the bill that, if successful, would clear the measure for passage this week. Senate Majority Leader Mitch McConnell also took steps to limit amendments that can be offered to the bill. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
