Congress Close To Passing Puerto Rico Debt Crisis Bill
I am very pleased to hear the news that a fix for Puerto Rico’s $73 billion debt crisis is close at hand. A major procedural hurdle was passed today which all but guarantees that it will become law. The Senate vote on cloture was 68 to 32 strongly suggesting that the measure will clear the chamber and reach President Barack Obama’s desk before Friday, when the island faces a default on $2 billion in debt payments.
I have previously made my views known about the need for this legislation, and strongly endorse the measure as it stands. Nothing is perfect, but this bill is simply action that is required.
Puerto Rico has said it cannot make the debt payment, and has already defaulted three times on other debt. If the bill is signed into law before July 1, it would preclude bondholder lawsuits over the missed payment.