Saturday, January 16, 2016
Lew Calls Puerto Rican Sit Down; Admits the Island is Already in Default
In a letter to congressional leaders, U.S. Treasury Secretary Jack Lew urged Congress to pass legislation to help Puerto Rico grapple with its more than $70 billion in debt.
Lew said he will visit Puerto Rico this coming week to meet with government officials to learn more about how they are trying to balance the budget. In the letter, he outlined how the Puerto Rican government is managing its money and the toll it has been taking on the 3.5 million Americans on the island.
"Puerto Rico is already in default. It is shifting funds from one creditor to pay another and has stopped payment altogether on several of its debts," he wrote in a letter to House Speaker Paul Ryan that was also sent to Senate leaders. "As predicted, creditors are filing lawsuits."
It’s also withholding millions of dollars in tax refunds owed to its residents, Lew said.
Lew wants Congress to give Puerto Rico the right to declare bankruptcy, a reasonable request, Republicans are holding up such proposals.
(via NBC News)
at 9:56:00 AM