By Greg Williams
Puerto Rico Governor Alejandro García Padilla declined a new federal oversight board's request that he submit an updated fiscal plan for the island. Under Congressional legislation passed in June, the board has the authority to approve or reject the Governor's fiscal plan. The board requested a revised plan after various stakeholders and civil groups testified about the merits of the plan to the board last week. According to the Associated Press, Governor García refused to rework the plan, arguing the board needs to restructure Puerto Rico's debt to avoid cuts to basic government services. It's not clear what the consequences of the Governor's decision will be.
"Restructuring Puerto Rico's debt as soon as possible is essential," noted Eric LeCompte, who addressed the board at its November 18 meeting in Puerto Rico and is the executive director of the religious development coalition Jubilee USA. "As Puerto Rico moves forward, there need to be plans and policies that prevent austerity, promote budget transparency and prevent tax avoidance on the island."
Puerto Rico is $72 billion in debt and avoided a large-scale default July 1 because the Congressional legislation that passed put a stay on debt lawsuits against the island. That stay will end in February. The board has the authority to restructure Puerto Rico's debt.
Read Eric LeCompte's address to the Fiscal Oversight and Management Board of Puerto Rico
Read more about Puerto Rico's Fiscal Oversight and Management Board
Read a timeline of Puerto Rico's debt crisis
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