How Washington’s latest plans to save Puerto Rico hurts the jobless
Fortune - 04/06/2016
As Puerto Rico deals with its fiscal woes, officials on Tuesday took steps to halt all government debt payments in a sign that they’re rejecting Washington’s latest plans to rescue the troubled island. This can be viewed as a sudden move, but it’s not all that surprising if anyone in Puerto Rico took a closer look at Washington’s efforts to restructure the island’s finances.
Recently, House Republicans unveiled draft legislation that would essentially allow Puerto to declare bankruptcy under a fiscal oversight authority charged with auditing its finances. If passed, the bill would institute a five-member Oversight Board that would essentially manage Puerto Rico’s debts and public finances. The federal Secretary of the Treasury and Puerto Rico’s governor would be relegated to non-voting members, leaving the island with little, if any, say over its financial future. The Oversight Board would override the budgetary decisions of the island’s elected government and bar the Commonwealth’s judiciary from reviewing its actions.