CFO
Menu
  • Accounting & Tax
  • Banking & Capital Markets
  • Growth Companies
  • Human Capital & Careers
  • Risk & Compliance
  • Strategy
  • Technology
  • Sign InSign Up
CFO
  • Conferences
  • Webcasts
  • Research
  • White Papers
  • Jobs
  • Training
  • Newsletters
  • Magazine
CFO
Companies Are Worried About Employee Retention, But Don’t Plan to Raise Pay
A study from PayScale found companies are hoping…
CEO Pay Ratio Rule Is ‘Disclosure by Soundbite’
New academic analysis pulls no punches, calling…
Luring Private Equity to Your Divestment Deal
Private equity bidders can accelerate a deal's…
  • Accounting & Tax
  • Banking & Capital Markets
  • Risk & Compliance
  • Human Capital & Careers
  • Growth Companies
  • Strategy
  • Technology
Global Business

House: Puerto Rico Rescue Not a Bailout

“Today, the House acted to prevent Puerto Rico's fiscal crisis from escalating to a humanitarian catastrophe," says a co-author of the bill.

Katie Kuehner-Hebert
June 10, 2016 | CFO.com | US - Comments: 1
share
Tweet
Print

Email this article

The U.S. House of Representatives has overwhelmingly passed a bill to help Puerto Rico dig out of its financial mess.

H.R. 5278, termed the Puerto Rico Oversight, Management and Economic Stability Act or PROMESA (the Spanish word for “promise”), would create a financial oversight board with the authority to restructure some of the U.S. territory’s $70 billion debt.

Recommended Stories:
  • Firms Hedging Against Risk of No-Deal Brexit
  • Ford Profit Hit by Losses in Overseas Markets
  • China, US Trade War a Duel of Brains and Brawn

It passed the House on Thursday with a vote of 297 to 127 as President Barack Obama, House Speaker Paul Ryan (R-Wis.), and Minority Leader Nancy Pelosi (D-Calif.) all lined up behind it.

“Today, the House acted to prevent Puerto Rico’s fiscal crisis from escalating to a humanitarian catastrophe,” Rep. Rob Bishop, a Republican from Utah who helped to draft the bill, said in a news release.

As The Hill reports, the crisis has been fueled by “years of economic decline and an exodus of Puerto Ricans to the U.S. mainland, leaving the island with a shrinking pile of revenues.”

Puerto Rico has already defaulted on its debts three times in the past year and a payment of nearly $2 billion is due July 1. But H.R. 5278 provides a grace period through at least February 2017 that allows it to only have to pay interest on its debts (if it can). Creditors would not be able to sue.

“The Senate should act expeditiously to review and vote on this measure, so the President can sign the bill into law ahead of the critical July 1st debt payment deadline,” White House Press Secretary Josh Earnest said after its passage.

The bill also would give the board the ability to sell Puerto Rican government assets and allow the territory to temporarily lower the minimum wage for some workers.

Co-sponsor Rep. Jim Sensenbrenner (R-Wis.) emphasized that the legislation was not a bailout.

“It does not spend a single cent of taxpayer money,” he said. “It’s a common sense solution to a crisis that is hurting millions of American citizens, and its passage today not only protects taxpayers, but brings renewed hope for a better future to every Puerto Rican.”

Post navigation

← H&R Block Shares Up Despite ‘Bad Tax Season’
Dell Parent Posts Loss from EMC Deal →

One response to “House: Puerto Rico Rescue Not a Bailout”

  1. Patrick Lyons said 06/13/16 15:44pm

    Once again the “can has been kicked down the road.” When will the causes of the exodus (business stifling regulations ) be addressed and what is being done to reduce the ever-increasing public sector liabilities?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Popular Articles

  1. Mismatch: Finance Roles’ Importance vs. Performance
  2. SEC Accuses Four Firms of ICFR Deficiencies
  3. Tesla CFO Ahuja’s Retirement Stuns Wall St
  4. DHS Announces Changes To H-1B System
  5. ASC 606: Trips, Traps, and Troubleshooting
Advertisement
 

Topics

  • Accounting & Tax
  • Banking & Capital Markets
  • Human Capital & Careers
  • Growth Companies
  • Risk & Compliance
  • Strategy
  • Technology

Media

  • Videos
  • Whitepapers
  • Research
  • Magazine

Events

  • Conferences
  • Argyle Events
  • Webcasts

Services

  • Reprints
  • Back Issues
  • Mobile
  • Widgets
  • RSS

About CFO

  • About CFO
  • Editorial Staff
  • Press
  • Advertise
  • Contact Us

Want the Magazine?

Relax and unplug with our award-winning coverage.

Subscribe Now
Follow Us