Treasury Secretary Urges Congress to Rescue Puerto Rico From Debt Crisis

U.S. Treasury Secretary Jack Lew paid a visit to Puerto Rico, where he held a press conference urging Congress to take action to help alleviate the island's massive debt and humanitarian crisis.

During his first trip to the Caribbean island, Lew met with Puerto Rican officials on Wednesday to discuss ways to tackle the commonwealth's $72 billion debt.

"Only Congress can enact the legislative measures necessary for Puerto Rico to resolve this problem," he said at a news conference in San Juan. "The people of Puerto Rico are sacrificing, but unless that sacrifice is shared by creditors in an orderly restructuring, there is no path out of insolvency and back to growth."

Lew also laid out President Barack Obama's proposal to handle the crisis, which includes granting Puerto Rico's cities the ability to file for Chapter 9 bankruptcy, while providing the island with independent fiscal oversight, additional health care funding and employment incentives.

Republicans, however, have stalled on drafting a bill, arguing that they need more information about the island's financial situation. Others reject the idea of granting Puerto Rico restructuring powers because that would change the rules under which the debt was issued, they say.

Still, Lew stressed that "without congressional action, Puerto Rico will face a long and difficult recovery that could have harmful consequences for the American citizens who call the island home. That is why we have called on Congress to act without delay."

During the conference, Lew also mentioned that the U.S. territory is already defaulting on loans and struggling to balance funds between multiple creditors. Plus, the government has stopped some debt payments, leaving residents to carry the load wrought by the financial crisis.

"As predicted, creditors are filing lawsuits. Liquidity at the Government Development Bank, which provides essential banking and fiscal services to the central government, is low," he said, according to NBC News. "Tax refunds are being withheld and assets in the pension system have been sold to pay out pension bills."

Back in the States, House Speaker Paul Ryan, R-Wisc., has promised to work to reach a solution for Puerto Rico by the end of the quarter.

"Ryan has committed to producing a responsible solution for Puerto Rico before the end of March," his office stated in a press statement sent to Latin Post. "In order to assist the 3.5 million Americans who call this island home, Congress must pass legislation for the president to sign into law without delay."

Meanwhile, the Hispanic National Bar Association (HNBA) launched a task force on Puerto Rico, which will conduct a 10-week review to study the crisis and make recommendations on how the White House and Congress can help resolve it.

"Millions of families in Puerto Rico cannot continue to suffer the inaction of our federal government," HNBA President Robert T. Maldonado said in a statement to Latin Post. "In response to this lack of action, we have convened this Task Force to provide a thorough analysis and set of proposals to address the increasingly worsening economic situation on the island."

By Selena Hill (staff@latinpost.com)

Treasury Secretary Urges Congress to Rescue Puerto Rico From Debt Crisis