A study residence bill to assist Puerto Rico with $70 billion debt

The residence is slated to vote Thursday on rules that would help rescue Puerto Rico from its $70 billion debt. a number of the provisions in the invoice:

manipulate BOARD: A seven-member board appointed with the aid of Congress and the president could assist Puerto Rico get its finances so as, just like a board that helped guide the District of Columbia through a economic disaster two a long time ago. The territory's government could have to create a monetary plan and publish budgets to the board. In a few cases, the board may want to override the territorial authorities.

fiscal PLANS: The board and the territorial authorities could expand precise financial plans meant to attain fiscal duty and eventual access to markets. The plan could direct the territory to fund public offerings and enhance responsibility. via the financial plans, the board could ought to discern out the way to maintain the legal rights of creditors and also shore up pension shortfalls. The island has underfunded public pension responsibilities with the aid of greater than $40 billion.

DEBT RESTRUCTURING: like several US states and territories, Puerto Rico can not claim bankruptcy under federal law. however mainland municipalities and their utilities can, at the same time as municipalities and utilities in Puerto Rico cannot. The bill does no longer allow the island full financial disaster authority, however offers the control board oversight authority over negotiations with lenders and the courts over lowering some debt.

 

minimum salary: Puerto Rico could be allowed to briefly lower federal minimal salary necessities for a few younger employees, but that authority could expire with the termination of the oversight board.