Puerto Rico Debt Crisis: House Speaker Paul Ryan Pledges Action for Early 2016
Although the omnibus bill did not address Puerto Rico's financial crisis, Speaker of the House Paul Ryan, R-Wisc., has reportedly made the commonwealth's debt struggle a top issue for next year.
Ryan has designated the first three months of the new year for relevant House committees to "come up with a responsible solution" for the island's debt crisis. Ryan's statement came a day after the final language of the omnibus bill was revealed.
Puerto Rico Gov. Alejandro Garcia Padilla, however, criticized congressional leaders for not including language in the omnibus bill to give the commonwealth the same Chapter 11 bankruptcy laws as standard U.S. states. Garcia Padilla said Puerto Rico would encounter "massive, costly litigation" that will prevent the island's residents, who are also U.S. citizens, from accessing "essential services."
"By not acting now, Congress has opted for the U.S. Commonwealth to default on its obligations and unfold into chaos. Once again Wall Street has demonstrated its control over Congress; Wall Street rules Congress," Garcia Padilla said in a statement. "That power is clearly factored into the fundamental analysis of hedge funds and vulture funds that control our democracy."
Garcia Padilla had even made a trip to Washington, D.C. earlier this month to further make the case for Congress to address the debt crisis. He requested language in the omnibus legislation that would give Puerto Rico "the tools to do the job" in addressing the debt, and he did not call for a bailout.
Rep. Luis Gutierrez, D-Ill., stood by Garcia Padilla and pledged to vote against the omnibus bill if language for the island's debt was not included. On Dec. 18, Gutierrez kept his pledge and voted against the government spending bill.
"Despite intentions to enact policies to restructure Puerto Rico's debt next year, I voted against the omnibus because it does not guarantee schools, police, and hospitals will function for the U.S. citizens of Puerto Rico tomorrow and next week," Gutierrez said in a press release. "It is a crisis that should have been addressed now, not next year."
Gutierrez has acknowledged Ryan's pledge to work on a comprehensive legislative framework for action for Puerto Rico and how Republicans will "take all the best ideas of Puerto Rico and consider in an honest and fair manner ways to restructure Puerto Rico's debt."
Despite Ryan's word to help address Puerto Rico's financial crisis in the early months of 2016, the island has a $1.4 billion payment due on Jan. 1, 2016. As Latin Post reported, Puerto Rico's debt has climbed to $72 billion.
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For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.
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