The Senate today is scheduled to vote on a bill already approved by the House that would restructure Puerto Rico’s debts and could create the conditions for recovery, according to a New York Times editorial. If the bill loses, Puerto Rico will default on Friday on a $2 billion debt payment, creditors will keep suing for full repayment and essential services on the island, including health, sanitation, education, electricity, public transportation and public safety, will continue to decline. Senators in both parties have objected to the yes-or-no nature of the vote, saying they want to amend the bill. But amendments would likely kill the bill, in part because it passed the House only after negotiations and compromise among both parties and the White House. Even if the House were inclined to pass an amended bill, it could not do so before the July 1 default date because it is not in session. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
