US Treasury pushes Congress to pass Puerto Rico bankruptcy plan

[Eugene]

Source: The Guardian and agencies

The US Treasury Department is warning of a potential government shutdown in Puerto Rico and lengthy litigation if Congress does not approve a bankruptcy mechanism for the US territory soon.

“The government remains open only because the governor authorized more than $1bn in onerous and unsustainable emergency liquidity actions. Tax refunds have been withheld from citizens. Pension assets, already severely depleted, are being sold to fund government operations. Money dedicated to one group of creditors is being taken to pay other creditors,” US Treasury counselor Antonio Weiss told Congress on Thursday.

“The inevitable defaults and lawsuits have already begun. Without action, this crisis will escalate,” he said.

In a hearing that lasted more than two hours, Weiss outlined the Treasury’s proposal for debt-restructuring authority paired with fiscal oversight and urged Congress to act to help the island fix its crisis.

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Read more: http://www.theguardian.com/world/2016/feb/25/us-treasury-congress-puerto-rico-bankruptcy-plan-risk-shutdown

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Jana Kasperkevic in New York and agencies
Thursday 25 February 2016 22.54 GMT Last modified on Thursday 25 February 2016 23.09 GMT

[CanonRay]

1. The GOP doesn't give a crap

those people are brown.

[rladdi]

2. The Republicans care less about Puerto Rico, like they do the USA. The

only handouts they want are for there states when in a crisis. Good Example is MICH Gov. Snyder, getting over 100 million for the Flint water crisis, then we have Gov. Christie in NY, Gov. Abbott, TX always begging for government aid. Republicans say they hates taxes, but how would the FED gets their budgets in balance if the Feds didn't have taxes? Voters do you actually believe the Republicans and how they want to lower taxes. NO WAY. It just a method of getting votes like we see in the GOP "so called debates".