Puerto Rico Bill Won't Shield GOs, Congressional Aide Says
- House committee unveils discussion draft of Puerto Rico bill
- Federal board would impose `undue and undemocratic control'
The Puerto Rican flag flies as people protest outside Wall Street against cutbacks and austerity measures on Dec. 2, 2015, in New York City.
Photographer: Spencer Platt/Getty ImagesDraft legislation to reduce Puerto Rico’s $70 billion debt load may fail to shield debt protected by the island’s constitution.
The House Natural Resources Committee released Tuesday a discussion draft of a bill that would establish a federal control board to manage Puerto Rico’s finances and oversee any restructuring of debt. It plans to introduce the bill April 11. The proposed oversight panel may consider the commonwealth’s $13 billion of general-obligation debt, which its constitution says must be repaid before other expenses, if it believes those securities need to be altered, a congressional aide told reporters during a conference call.