A proposed solution has finally arrived but it doesn't seem to be in Puerto Rico's best interests. A brief summary of the bill is provided below.
PROMESA (Puerto Rico Oversight, Management, and Economic Stability Act)
1) Establishes 5 member committee appointed by the President of the USA
2) 4 of 5 members from lists provided by Senate Majority Leader and House Speaker
3) Governor of Puerto Rico would sit on board but have no voting rights
4) Injunction on debt payments for 18 months and preventing firms from filing lawsuits
The proposed legislation clearly limits the involvement of the people of Puerto Rico. The injunction on debt payments is a positive start but not requiring firms to take a haircut is an insult to an already dire situation on the island. A situation approaching humanitarian crisis levels.
Senator, and Democratic Presidential Candidate Bernie Sanders, believes firms should take a haircut and the people of Puerto Rico should be more involved in the proposed solution. The solution doesn't include any bankruptcy protection or federal funds for the island. The only thing the proposal provides is for a Federal oversight committee.
If this is the proposed solution, why wait until 2016 to implement such a committee? The crippling situation in Puerto Rico has been going on for quite some time. Perhaps Bernie Sanders is Puerto Rico's best friend at the moment since he is in the spotlight and brining attention to the islands problems may help. He believes the Island should have the same protections as any municipality, and he's right.
PROMESA (Puerto Rico Oversight, Management, and Economic Stability Act)
1) Establishes 5 member committee appointed by the President of the USA
2) 4 of 5 members from lists provided by Senate Majority Leader and House Speaker
3) Governor of Puerto Rico would sit on board but have no voting rights
4) Injunction on debt payments for 18 months and preventing firms from filing lawsuits
The proposed legislation clearly limits the involvement of the people of Puerto Rico. The injunction on debt payments is a positive start but not requiring firms to take a haircut is an insult to an already dire situation on the island. A situation approaching humanitarian crisis levels.
Senator, and Democratic Presidential Candidate Bernie Sanders, believes firms should take a haircut and the people of Puerto Rico should be more involved in the proposed solution. The solution doesn't include any bankruptcy protection or federal funds for the island. The only thing the proposal provides is for a Federal oversight committee.
If this is the proposed solution, why wait until 2016 to implement such a committee? The crippling situation in Puerto Rico has been going on for quite some time. Perhaps Bernie Sanders is Puerto Rico's best friend at the moment since he is in the spotlight and brining attention to the islands problems may help. He believes the Island should have the same protections as any municipality, and he's right.
Santurce, San Juan (October 2014)
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