Puerto Rico Faces Prospect of Financial Control Board
- Investors, hearing witnesses favor oversight for Puerto Rico
- Republicans may agree to some restructuring of island's debt
American and Puerto Rican flags fly outside the Senate of Puerto Rico building in San Juan, Puerto Rico, Aug. 14, 2015.
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Puerto Rico has been anxious for Congress to address its $70 billion debt crisis, but the island’s leaders may not be as happy with the potential outcome as the investors holding its securities.
Driving the process are Republicans, who control both chambers and say the island has proved it’s not able to manage its finances and needs an external authority to ensure it cuts expenses and deficits. Democrats, essential to passing a bill in the Senate, insist on giving Puerto Rico access to an orderly, court-supervised process allowing it to cut its debt.