US House of Representatives provides contingency plan on Puerto Rico's crippling debt crisis

By

The debilitating debt that Puerto Rico is facing has been given a contingency plan by U.S leading Republicans. The lawmakers also alleged the investing allied groups of misleading the Congress.

According to the Washington Post, the country of Puerto Rico which includes some of its various corporations and political subdivisions has a debt of more than $70 billion to a number of different creditors and holdout bondholders. Since then, the country has been struggling to get out of its debt situation. The country however, needs to pay off $422 million of its debt before May 1 and another $2 billion by July.

As reported by the Fiscal Times, despite the plan, investors would face loss if the plan will materialize. Creditors and investors alike are asking the Congress to protect their bottom lines. The rescue plan adopts some of the principles of bankruptcy law and some lawmakers don't like the idea of Puerto Rico modifying its bond issue because it will create chaos in the municipal market.

Utah Representative Rob Bishop, who is also the head of the House Natural Resources, however, said that the accusations for a government bailout were "crap". He added that the plan will protect taxpayers and avoid spending the money of the government as per Reuters.

Representative Tom McClintock of California, who opposes the plan, said it would do more damage than provide help. He added that if they can do it to Puerto Rico, then they can do it to other states as well.

Bishop's effort in making the plan work has been supported by House Speaker Paul Ryan. Ryan believes that it will hold the right people accountable for the country's crisis. The House Speaker also applauded the idea of an independent board that will settle investor disputes. Ryan, however, will need the votes of many fiscally-conservative Republicans in order to get the rescue plan through the House of Congress.

Tags
U.S., US House of Representatives, US Congress, Puerto Rico

© 2025 Lawyer Herald All rights reserved. Do not reproduce without permission.

Join the Discussion
More Law & Society
Trump No Longer Blames Biden for ‘Open Border’ Policy: ‘Look

Trump Now Claims Biden 'Wasn't for Open Borders,' Blames 'Radical Left' Politicians for Using Autopen

Former US Attorney Warns Trump’s Threats Against Rosie O’Donnell Are

Former US Attorney Warns Trump's Threats Against Rosie O'Donnell Are 'Claiming Powers of Full-Blown Dictator'

Texas Floods Kill Over 100 as New Rain Threatens Hard-Hit Communities

Flooded Texas County Turned Down Funds for Warning System From Biden Admin in 2021: 'We Don't Want to Be Bought'

Donald Trump and Tom Homan

Border Czar Declares 'Physical Appearance' Is Enough for ICE to Detain and Question: 'They Don't Need Probable Cause'