Puerto Rico Debt Moratorium Gets Praise from Governor Garcia Padilla While House Hearing Set for April 13
Puerto Rico approved legislation that will grant its governor, Alejandro Garcia Padilla, to suspend debt payments.
Protecting the People 'We Were Entrusted to Represent and Serve'
On April 5, the Puerto Rico Senate passed the "Puerto Rico Emergency Moratorium and Financial Rehabilitation Act." In a statement released on April 6, Garcia Padilla said the bill is further proof of the commonwealth moral and legal commitment to protect the island's residents that "we were entrusted to represent and serve."
"This legislation provides us with the tools to address the highest priority of needs -- providing essential services to our people -- without fear of retribution," Garcia Padilla said on Wednesday. "This legislation also helps the Government Development Bank address its difficult situation in an orderly manner."
According to the Puerto Rican governor, only Puerto Ricans and the island's leaders have stepped up to address the commonwealth's $72 billion debt crisis, despite calls for the U.S. Congress to help provide comprehensive solutions.
Garcia Padilla claims creditors have participated in a public relations campaign featuring misinformation toward the public and Congress about necessary solutions for Puerto Rico's 3.5 million inhabitants, who are also U.S. citizens.
"The Commonwealth is insolvent and the situation requires responsible efforts to finding a solution. We remain committed to working with all stakeholders to reach a mutually beneficial outcome to that end," continued Garcia Padilla.
Meanwhile in Congress, Hearing Date Confirmed
A hearing about a Puerto Rico restructuring bill has been confirmed for April 13.
In late March, Rep. Rob Bishop, R-Utah, chairman of the House Committee on Natural Resources, announced a draft legislation addressing the commonwealth's economic crisis. Bishop acknowledges the works comes after House Speaker Paul Ryan's, R-Wisc., orders for select and relevant House committees to find solutions on the issue.
Bishop said the draft legislation "provides Puerto Rico with tools to impose discipline over its finances, meet its obligations and restore confidence in its institutions. The framework was developed through broad-based collaboration with Members of Congress in both parties, the U.S. Department of the Treasury, a range of economic, business and market stakeholders, and with engagement from Puerto Rico's elected leadership."
The House Committee on Natural Resources did note changes in the draft resolution is open for changes based on feedback.
"Everyone is working hard and in good faith on the Puerto Rico bill, and it's still a work in progress," said House Committee on Natural Resources Ranking Member Raul Grijalva, D-Ariz. "I look forward to a hearing and I'm hopeful that my colleagues on the Committee will remain focused on our common goals here -- helping the families living on the island and giving Puerto Rico a clear path forward."
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