The Obama administration has proposed to Congress to rescue Puerto Rico from default


WASHINGTON, October 22. /Corr. Ivan Lebedev/. The Obama administration appealed to Congress with a proposal to save from default of Puerto Rico with the status of the territory, freely joined the United States. At present the authorities of this island state in the Caribbean is unable to service its debt amounting to $72 billion.

“Only Congress has the right to grant Puerto Rico the tools needed to solve its pressing problems and ensure long-term economic growth,” – said in a joint appeal to the American legislators, the Minister of Finance Jacob Lew, Secretary of health and human services Sylvia Mathews Burwell and the head of the National economic Council under the President of the USA Jeff Zients.

They noted that “Puerto Rico and 3.5 million American citizens who call the island their home, are faced with a serious crisis that requires immediate action of the U.S. Congress.” Earlier Wednesday, the Government development Bank for Puerto Rico announced the completion of negotiations with a group of creditors without reaching an agreement on debt restructuring.

It is expected that a concrete plan for financial assistance Puerto Rico, which will allow it to restructure debt and implement economic reforms to exit crisis, will be considered Thursday in Senate Committee on energy and natural resources dealing with the problems of the overseas territories of the United States.