A suggestion from a U.S. Treasury official to protect Puerto Rico’s pension payments while also seeking cuts from all bondholders may be viewed as the latest sign that politicians favor retirees over investors in cases of municipal distress, Bloomberg News reported yesterday.
Puerto Rico in Distress
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A broad plan being put forward by the Treasury Department to ease Puerto Rico’s financial crisis would put pension payments to retirees ahead of payments to bondholders, the New York Times reported today. The proposal was being driven by evidence that Puerto Rico’s pension system is nearly out of money, leaving retirees who are dependent on it financially vulnerable.
Two House committees will be holding hearings on Puerto Rico’s debt crisis tomorrow. The first hearing, entitled “Puerto Rico’s Debt Crisis and Its Impact on the Bond Markets,” will be held by the House Financial Services Subcommittee on Oversight and Investigations, at 10 a.m. ET.
Two House committees will be holding hearings on Puerto Rico’s debt crisis on Feb. 25, according to a press release from Rep. Pedro Pierluisi (D-P.R.). The first hearing, entitled “Puerto Rico’s Debt Crisis and Its Impact on the Bond Markets,” will be held by the House Financial Services Subcommittee on Oversight and Investigations, at 10 a.m. ET. The Subcommittee is chaired by Rep.