Home / Others / Hurricane-Torn Puerto Rico says it can not pay any of its debts for 5 years

Hurricane-Torn Puerto Rico says it can not pay any of its debts for 5 years

The fiscal plan must now be approved by the supervisory board, which has been at odds with Puerto Rican leaders on how to restore fiscal balance after years of spending more than they had, and borrow to make up the difference. The board, for example, has insisted on reducing the pensions of public employees by 10 percent, on average, as a way to spread economic suffering equitably among Puerto Ricans. Mr. Rosselló said on Wednesday that pensioners are too "vulnerable" a population.

Puerto Rico declared a bankruptcy form last May, giving the island a way to decide how much to cut pensions, debt payments and other obligations under federal judicial supervision The federal supervisory board will represent the Puerto Rican government in the procedures, but you must first accept the governor's tax plan. If you do not agree, you are empowered to impose your own fiscal plan on the island.

On Monday, Mr. Rosselló announced his intention to privatize the Electric Power Authority of Puerto Rico, known as Prepa, saying that electricity would be cheaper and more reliable and attract more business to the island. Many Puerto Ricans blame Prepa, who is insolvent, and his government for their suffering during the long blackout. The company hired a little-known contractor in Montana, Whitefish Energy Holdings, to take care of repairs immediately after the storm, breaking the usual procedure of allowing another utility to make repairs at cost after a natural disaster . The high school was forced to cancel the contract after it was subjected to intense federal scrutiny.

Prepa pays so little with cash that it closed two plants on Tuesday night to save fuel. The government said that people who had regained their power would not be affected.

The federal government, however, has questioned whether Puerto Rico is as poor in cash as it says. On January 9, the Treasury Department and the Federal Emergency Management Agency notified Puerto Rico that it could not begin using its portion of a $ 4.9 billion disaster relief loan approved by Congress because the community still has approximately $ 1.7 billion in cash available to spend on its own, as well as another $ 6.9 billion in cash "deposited in more than 800 accounts in all Commonwealth government entities".

Last Friday, the supervisory board asked Puerto Rican officials about the $ 6.9 billion that were discovered in December. It was said that around 4,300 million dollars were destined to finance other government agencies, even when energy, water and sewerage utility companies struggle to make ends meet.

Continue reading the main story

Source link