Wednesday, January 20, 2016
SAN JUAN, Puerto Rico (AP) — U.S. Treasury Secretary Jacob Lew stressed today during a visit to Puerto Rico that congressional action is the only solution to pulling the U.S. territory out of its worsening economic crisis.
He called on Congress to approve a restructuring mechanism to help the island deal with its $72 billion public debt. He also said some kind of oversight authority that respects Puerto Rico's system of self-government is needed.
"Now is the time to act, and I'm here to further that effort," Lew said after meeting with Gov. Alejandro Garcia Padilla. "It would be a mistake for anyone to think there's a plan B that comes anywhere near to being as effective."
His trip comes just days before members of the U.S. House Subcommittee on Insular Affairs are scheduled to discuss creating an authority to oversee Puerto Rico's finances. Republicans have been pushing for a federal fiscal control board similar to one that helped guide the District of Columbia through a fiscal crisis two decades ago. But some Puerto Rican officials have balked at the idea of the federal government having such oversight.
Pedro Pierluisi, Puerto Rico's representative in Congress, said that he expected a legislative package to be unveiled after next week's hearing. He stressed, however, that the package has to give Puerto Rico the authority to restructure a portion of its debt and provide it with equal treatment under federal programs.