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Wednesday, June 29, 2016

Puerto Rico To Default On July 1 After Senate Passes Bailout Bill

http://thehill.com/policy/finance/285952-senate-clears-puerto-rico-debt-bill-for-final-passage

With the bill apparently set to become law, Congress will have taken steps to address a deepening economic, fiscal, and humanitarian crisis on the island. Years of economic decline had led to a mass exodus of Puerto Ricans to the American mainland, driving down its revenues and eventually leaving it without enough government funds to pay off its debt.

The island’s status as a U.S. territory left officials there with no recourse, since a quirk in the bankruptcy code leaves territories without access to the same bankruptcy protections afforded to states and municipalities. In effect, the island needed Congress to pass a law, in an election year, to get out from under its crushing debt load.

The island has had to slash public services in an effort to stay afloat, and the White House warned that even more severe steps, like the shuttering of hospitals, could come without congressional action.

But now, the bill freezes any legislation from creditors, and allows the oversight board to step in and work towards an affordable debt restructuring package for the island.

Liberal lawmakers griped about side provisions that relax labor regulations on the island. Democrats also were peeved that Republicans brought the bill straight to the floor without the opportunity to try and amend it.

  • PUERTO RICO GOVERNOR SAYS COMMONWEALTH WILL DEFAULT ON JULY 1
 Might as well just drive around in a van full of cash and toss it out a window same thing...

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