House GOP tries to discover consensus on assistance for PR

70
Source:   —  April 13, 2016, at 7:05 PM

Rep. Rob Bishop, R-Utah, said Puerto Rico'south financial woes will become much worse when the U. S. territory fails to create debt payments in less than a month.

House GOP tries to discover consensus on assistance for PR

Congress should act quickly to help PR manage its $70 billion debt as multimillion-dollar payments to creditors loom, a House committee chairman said Wednesday.

Rep. Rob Bishop, R-Utah, said Puerto Rico'south financial woes will become much worse when the U. S. territory fails to create debt payments in less than a month. Legislation introduced by the House Natural Resources Committee on Tuesday would create a tough control board to manage Puerto Rico's finances.

At a hearing Wednesday, both Bishop and an Obama administration official said that if Congress doesn't act, lawmakers running the risk of a future financial bailout.

"Unfortunately, because the situation has gotten so dire, wide reforms are required now," Bishop said.

The committee was expected to vote on the bill Thursday.

In drafting the proposal, GOP lawmakers have tried to satisfy Puerto Rico'south government, creditors and conservative members of their caucus. Democrats and Puerto Rican executive have worried that the new board would've too much power, while some conservatives have objected because the map would authorize some court-supervised debt restructuring.

Hoping to bring fellow Republicans aboard, Speaker Paul Ryan, R-Wis., quickly endorsed the legislation, which would create a seven-member board to audit the San Juan government and keep financial plans in place. It'd still authorize Puerto Rican leaders to have some declare in the process, a key priority for Democrats.

"Congress has a constitutional and financial responsibility to bring order to the chaos that's unfolding in the U. S. territory — chaos that could soon wreak havoc on the American bond market," Ryan said.

Ryan pledged latest year to discover a "reasonable solution" for Puerto Rico. But the effort has so distant divided Republicans and failed to invite support from Democrats and Puerto Rican officials.

Committee Republicans said a powerful control board is required to obtain the island'south economy back on track. But they said when introducing the latest draft that they were aiming to avert a "colonialist" approach.

The new version of the legislation would expand the size of the control board from five to seven seats, with the two added members picked by the minority party in the House and Senate — a clear enticement to Democrats who have opposed the bill. House Democratic boss Nancy Pelosi of CA said the earlier version of the bill would exert "undue and undemocratic control" over the territory.

She still doesn't seem prepared to sign on.

"More work needs to be done on the heart of the Republican proposal to make better the makeup and scope of the board and streamline the restructuring process to create it more workable," she said in a statement late Tuesday, without detailing the changes should would love to see.

The legislation wouldn't give PR the wide bankruptcy authority sought, but would authorize the board to determine whether debt restructuring was required in some cases. The board could then alleviate court-supervised debt restructuring.

In an attempt to satisfy conservatives, the new draft would give creditors more of a declare on debt plans.

The House Republican Study Committee, a grouping of around one hundred seventy conservatives, had expressed concerns about the debt restructuring provisions in the first draft, throwing the bill'south future in doubt. TX Rep. Bill Flores, head of that group, said they're still reviewing the latest draft introduced Tuesday, but members "are encouraged that there show up to be some improvements."

Pedro Pierluisi, Puerto Rico'south nonvoting representative in Congress, praised Bishop and the sponsor of the bill, WI Republican Rep. Sean Duffy, for eliminating speech that'd have allowed the board to issue some rules and regulations as if it were the territory'south government. Gov. Alejandro Garcia Padilla said the revised version incorporates some of the island government'south suggestions about the board and was a step in the right direction.

PR has been mired in economic stagnation for a decade. The financial problems worsened as a result of setbacks in the wider U. S. economy, and government spending in PR continued unchecked as borrowing covered increasing deficits.

READ ALSO
As minimum wage marches toward $15, tiny businesses adapt

As minimum wage marches toward $15, tiny businesses adapt

The owners of Dog Haus, a chain of about twenty franchise restaurants in the West, may have customers choose up their meals at the counters in two company-owned stores instead of using servers to carry food to tables.

84
Ct sides with Argentina, speeding along bond settlements

Ct sides with Argentina, speeding along bond settlements

The second U. S. Circuit Ct of Appeals in NY City on Wednesday turned far creditors who wanted to hold in space court-ordered protections.

60
When a new tire is an : Pirelli P Zero updated for its thirtieth birthday

When a new tire is an : Pirelli P Zero updated for its thirtieth birthday

The new tire gets an F1-style racing bead, more endurance and less rolling resistance for better gas mileage. Pirellis are nearly standard fare for many modern sports- and supercars.

74
Ford GT open for orders: Here’s how to obtain on the list

Ford GT open for orders: Here’s how to obtain on the list

Hype has been building for the latest GT since its debut at the two thousand fifteen Detroit auto show, and was piqued with the announcement that the GT will create the fiftieth anniversary of its one-two-three Le Mans finish this year.

86