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House Speaker Paul Ryan (R-WI) released the following statement after the Senate passed the bipartisan  Puerto Rico Oversight, Management, and Economic Stability Act   (PROMESA) : “I am pleased that the Senate has passed PROMESA, the result of months of work by the House. This bipartisan legislation addresses the fiscal crisis in Puerto Rico while protecting American taxpayers from a bailout of the territory. The legislation creates an oversight board that will institute the necessary reforms so Puerto Rico can begin to turn its economy around and get on a path to fiscal health. Congress has fulfilled our constitutional obligation and I urge President Obama to sign PROMESA immediately.” Puerto Rico Bill Heads to President’s Desk

The Supreme Court has struck down a Puerto Rican law that would have allowed the U.S. territory's public utilities to restructure their debt. The 5-2 ruling leaves management of the island's fiscal crisis to Congress. The House of Representatives   passed a bill last week   to help Puerto Rico manage its debt crisis. The Senate has not yet acted. By Robert Schroeder Supreme Court strikes down Puerto Rico debt restructuring law

What Does Debt Plan Mean for Puerto Rico?

The House of Representatives, in a rare moment of bipartisanship, passed a bill Thursday to help Puerto Rico restructure its massive, $70 billion debt load and hopefully avoid defaulting on any more of its debt payments. The bill establishes a seven-person advisory board that will be in charge of negotiating with the island's creditors, who lobbied hard against any kind of federal intervention out of fears the Puerto Rico would not pay its full debt. The Obama administration , led by Treasury Secretary Jacob Lew , has pushed hard to give the U.S. commonwealth some kind of relief, arguing that it has already cut back government services and needed some assistance. The bill, which passed 297-127 after a strong push by House Speaker Paul Ryan , R-Wis., did not include any direct financial assistance, allaying fears from many Republicans about a possible bailout. Instead, it allows the oversight board to negotiate with creditors and avoid a lengthy, and costly, battle in court. Rya...

The House on Thursday passed legislation to tackle Puerto Rico’s debt crisis, as Congress took a large step towards addressing the economic and humanitarian crisis enveloping the island. The carefully crafted compromise passed 297-127, earning majorities in both parties. The passage of the carefully crafted compromise is a significant win for Speaker Paul Ryan (R-Wis.), who was an early and active supporter of the legislation, and Minority Leader Nancy Pelosi (D-Calif.) and the White House, which also pushed the package. In a rare move, both Ryan and Pelosi took to the House floor to urge support for the legislation, shooting for broad bipartisan support to encourage speedy action through the Senate. Ryan made a moral case for the bill, arguing that the island's 3.5 million residents — who are American citizens — need Congress's support. "The Puerto Rican people are our fellow Americans. They pay our taxes. They fight in our wars," he said. "We cannot allow t...

Puerto Rico should avoid a potentially prolonged legal battle with bondholders by negotiating a reduction to its $70 billion debt, said New Progressive Party gubernatorial candidate Ricardo ‘Ricky’ Rossello, who criticized the current administration’s push to use the courts if such talks fail. In an interview in Manhattan, Rossello said the Puerto Rico Electric Power Authority’s December deal with creditors -- under which bondholders consented to a 15 percent loss -- is a model for how the U.S. territory can reduce what it owes. Governor Alejandro Garcia Padilla, a member of the opposing political party, has advocated for such a voluntary reduction, though he has pushed for power to cut the debt in court to put pressure on creditors. “Puerto Rico doesn’t win in a default and creditors don’t win in a default,” Rossello, a political commentator, said after speaking at Tuesday’s Debtwire conference. “There’s space for renegotiation of the terms, but it should be a good-faith renegotiation...

Hedge funds with billions of dollars at stake in Puerto Rico may be salivating over page 24, line 18 of legislation Congress will consider this week to address the island’s debt crisis. U.S. House leaders and Treasury officials jockeying to create a passable bill to pull Puerto Rico out of debt included a   provision  that has some experts scratching their heads: The board overseeing the restructuring can accept gifts. The legislation would create a seven-member board to manage the finances of the island struggling under $70 billion of debt. The panel, a central component of the bill, would have the power to ask a judge to order a forced restructuring if the commonwealth’s government can’t reach a deal with bondholders. It can also enforce balanced budgets for Puerto Rico’s government and recommend the sale of public assets if needed. While members will not be paid, the measure allows the board to “accept, use, and dispose of gifts, bequests, or devises of services or pro...

The U.S. government says that it would cost $370 million to implement a federal control board envisioned by legislation pending in Congress to oversee Puerto Rico's finances and that the island would have to pay the cost. The Congressional Budget Office issued the report Friday as Puerto Rico seeks help from the U.S. Congress to restructure $70 billion in public debt as the U.S. territory's government runs out of money amid the island's decade-long economic slump. The U.S. House is expected in upcoming weeks to debate the bill that proposes creation of a financial control board for Puerto Rico, among other things. The Congressional Budget Office also says that completing reports and administrative requirements detailed in the measure would cost the U.S. government $1 million next year. Read more here: http://www.heraldonline.com/news/business/article81645982.html#storylink=cpy The U.S. government says that it would cost $370 million to implement a federal control board...