Michael Thompson’s piece, “Should Virginians help bail out Puerto Rico?” (Fairfax County Times, June 5) incorrectly characterizes Puerto Rico’s efforts to grant its public corporations access to Chapter 9 of the U.S. Bankruptcy Code.
Puerto Rico’s bonds aren’t attractive to investors because of the Island’s inability to file for Chapter 9, but because our bonds are triple tax exempt.
Additionally, filing for Chapter 9 does not give carte blanche to Puerto Rico’s government to walk away from its debt. Chapter 9 would allow the island to work with its creditors and constituents to achieve a sustainable long-term solution and enable the government to continue providing essential services to Puerto Ricans in the short-term. Chapter 9 provides a legal and orderly framework to deal with the current crisis.
In fact, federal bankruptcy law never meant to exclude Puerto Rico — granting the island access to Chapter 9 needs to be done to correct a simple oversight. Chapter 9 was born as a policy during the Great Depression — it has always existed to help struggling municipalities deal with existing crises.
Puerto Rico is trying to responsibly deal with its fiscal emergency. Gov. García Padilla has tried every measure available to pay the island’s obligations without harming Puerto Rican families.
If Puerto Rico cannot obtain access to Chapter 9, its citizens face grave risks. Essential services could be shut off, businesses and residents could flee, and the island’s economy could collapse.
Governor García Padilla has already taken difficult steps to address the crisis he inherited, and he is prepared to take more as needed. Chapter 9 or an equivalent local law is the only solution that will allow Puerto Rico to honor its obligations while providing hardworking Puerto Ricans with the essential services they deserve.
Juan E. Hernández,
Director, Puerto Rico Federal Affairs Administration
Setting the record straight on Puerto Rico
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