There is no equating Puerto Rico to a US States. It is a territory and does not have the same rights as a state. The governance of the US territory will go back to oversight. There is no reason to do anything different.
The tone of the political ad paints a picture of irresponsible Democrats. It is nonsense.
February 25, 2016
By Heather Long
...The idea (click here) is to have a trusted third party look at the island's finances and come up with a plan -- to find a solution for its massive debt and also to help Puerto Rico climb out of its nearly 10 years of economic contraction.
The tone of the political ad paints a picture of irresponsible Democrats. It is nonsense.
February 25, 2016
By Heather Long
...The idea (click here) is to have a trusted third party look at the island's finances and come up with a plan -- to find a solution for its massive debt and also to help Puerto Rico climb out of its nearly 10 years of economic contraction.
"You go to Puerto Rico and the people are very nice. The island is very beautiful, but you see the financials and you get concerned immediately," says Phil Fischer, head of municipal bond research department for Bank of America Merrill Lynch.
Step 1 is getting reliable financial information from the government. Fischer says Puerto Rico is over 285 days late on its 2014 audit (there's finally a draft of the audit, but the process still isn't complete). Without the "real numbers," bondholders say they won't negotiate.
But the control board would mean a loss of some local authority. Some see it as return to the 1940s when Washington got to appoint Puerto Rico's governor.
"Most political and Puerto Rican government leaders are opposed to [a federal control board] if it's drafted in a way that you basically take away the Democratic rights of the people of Puerto Rico," says former governor Anibal Salvador Acevedo Vila, who is in the same party as the current governor....
