Mark-Viverito: Allow Puerto Rico To Restructure Debt
NEW YORK (CBSNewYork/AP) -- New York City Council Speaker Melissa Mark-Viverito said she wants Puerto Rico to have the ability to restructure its debt in the midst of a growing crisis.
Officials said the island's default on a $422 million bond payment is only the beginning if the U.S. Congress doesn't help resolve the situation soon.
Gov. Alejandro Garcia Padilla says Puerto Rico did not make nearly $370 million of the payment that was due Monday. It was the third default since 2015.
He said in a news conference that the consequences will be severe if Congress does not restore the territory's legal ability to restructure its debt under Chapter 9.
A measure before Congress would allow restructuring, but would also establish a fiscal control board. Mark-Viverito said such a board would remove local control and would favor the bond holders over the residents of Puerto Rico.
"The Republicans seem to be much more concerned about giving support to the hedge funds as opposed to primary care services," Mark-Viverito told WCBS 880's Rich Lamb. "The island needs to function, there are police officers and nurses and hospitals that have to provide care to patients."
Observers believe the current default will ramp up pressure on Congress to act.
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