Clinton wants access for Puerto Rico to U.S. bankruptcy laws

[Little Tich]

Source: Yahoo! News / Reuters

IOWA CITY, Iowa (Reuters) - U.S. Democratic presidential hopeful Hillary Clinton on Tuesday joined calls for changes in U.S. bankruptcy laws that would enable Puerto Rico's public entities to restructure some $72 billion in debt.

In Washington, two Democratic senators hope to move forward within weeks with legislation in Congress that would allow the U.S. territory to restructure debts in bankruptcy court, instead of risking chaos.

Governor Alejandro Garcia Padilla of Puerto Rico dropped a bombshell on debt holders a week ago by saying he wanted to restructure debt and postpone bond payments. He urged changes to U.S. bankruptcy laws that currently exclude Puerto Rico.

Like U.S. states, Puerto Rico cannot file for bankruptcy protection. But Puerto Rico's public entities do not have the ability of U.S. municipalities to enlist Chapter 9 of the U.S. Bankruptcy Code to restructure their debt.

Read more: http://news.yahoo.com/clinton-says-puerto-rico-access-u-bankruptcy-laws-110251683.html

[blackspade]

1. Which would make sense since PR is part of the U.S....

[DonCoquixote]

2. ok, here is what I think is the deal

Some of this will be cynical, but.

Jeb, Rubio and Cruz can count on he Cuban vote, which is still a major factor in the Florida vote. Jeb can also exploit the Mexican vote by trotting out his son, and by getting a few Bishops to make sure that every Catholic hears "vote for bush" every Sunday Mass. So, the one solid democratic vot6e is Puerto Rican. Also, many Puerto Ricans KNOW that if there is an exodus from the Island, it will be their family members who are either broke on the island, or broke here. I say this as a Puerto Rican in Florida whose family has been on a lot with back home.

[bluedigger]

3. She's not alone.

[elleng]

4. O'MALLEY said, Urging the Obama administration and Congress to act

"to avoid Puerto Rico's economic collapse,"
http://www.latintimes.com/puerto-rico-debt-crisis-hillary-hedges-other-presidential-candidates-support-327081

First, Puerto Rico should be able to negotiate with its creditors just as states can under the U.S. Bankruptcy code. Congress should approve Resident Commissioner Pedro Pierluisi’s legislation that would allow for this to happen.

Second, as I’ve stated before, the Department of Health and Human Services must end the inequitable treatment of Puerto Rico under Medicare, Medicaid and the Affordable Care Act. High costs and low reimbursement rates are a huge burden to Puerto Rico’s budget and millions of U.S. citizens are at risk of losing care.

These are two steps we can take today, but I urge the Administration and Congress to work with Puerto Rico on a path forward that both provides immediate relief, and builds a foundation for sustainable, long-term economic stability.

http://www.democraticunderground.com/1251431095