Puerto Rico Senate Rejects Federal Plan that Excludes Debt Restructuring

Bhahia says that if a Federal Oversight Board over Puerto Rico is adopted, that Puerto Rico will lose economic security.  It seems that Puerto Rico has ALREADY lost economic security with over $72 billion in debt and the situation worsening.  Something different must happen.  Spending more than your revenues/income, whether an individual, company, or government entity is unsustainable in the long term.  Giving away free stuff to buy votes, to those who do not pay for the free stuff, is not a sound economic policy.  Eventually you have more people free-riding in the wagon than pulling the wagon.  Those doing all the heavy pulling decide they either want a free ride in the wagon too or will stop giving others a free ride.  As more pullers get fed up and stop pulling, the wagon gets too heavy to be pulled anymore.

http://cb.pr/senate-rejects-federal-plan-that-excludes-debt-restructuring

Senate Rejects Federal Plan that Excludes Debt Restructuring

By on March 28, 2016

The plan must also provide mechanisms for debt restructuring and economic development.

Senate Resolution 1371 rejects a proposal by the U.S. House Natural Resources Committee, which according to a published draft would impose a Financial Oversight & Management Board with far-reaching powers over the island’s executive and legislative.

Eduardo Bhatia

In a statement, Puerto Rico Senate President Eduardo A. Bhatia was emphatic in highlighting the negative effects a board such as that proposed in the draft document prepared by the U.S. House would have on Puerto Rican democracy.

“The peoples who trade democracy for economic security lose both,” Bhatia stated. “I tell you: Do not accept that board. We do not accept it that way. I have no problem with an advisory or supervisory board with which we could talk. But a control board over Puerto Rico affairs, we’ll never accept,” he added.

Meanwhile, Sen. Ramón Luis Nieves stated Puerto Rico is not expecting a bailout by Congress in terms of a multimillion-dollar bailout.

“Puerto Rico is asking for debt restructuring mechanisms. We are demanding being afforded tools to create employment and generate economic development,” he said.

Sen. Rossana López and Sens. Ángel Rosa and José Nadal Power agreed with the preceding statements at the beginning of Monday’s session.

The resolution was adopted with 17 votes in favor and votes against it by Sens. Thomas Rivera Schatz, Margarita Nolasco, Migdalia Padilla, Ángel Chayane Martínez and José “Joito” Pérez.

Sen. María de Lourdes Martínez, of the Puerto Rican Independence Party, also voted against the resolution.

The Puerto Rico Senate will be in recess until Thursday.

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