The Puerto Rico Federal Oversight and Management Board submitted a proposed $10 billion budget on Thursday as federal legislators debate whether to curtail the board’s power over the U.S. territory, the Washington Post reported.
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The federal control board that oversees Puerto Rico’s finances sued the U.S. territorial government on Monday, asking courts to order it to provide documents related to a failed multimillion-dollar purchase of Covid-19 testing kits and other medical supplies, the Associated Press reported.
Although the members of the Financial Oversight and Management Board of Puerto Rico were not nominated by the President nor confirmed by the Senate, the Supreme Court ruled yesterday that the appointment of the Board did not violate the Appointments Clause of the Constitution because they exercise “primarily local duties,” according to an analysis from ABI Editor-at-Large Bill Rochelle.
Puerto Rico’s financial oversight officials are backing away from commitments made to bondholders as the economic damage from the coronavirus becomes clearer, WSJ Pro Bankruptcy reported. The board overseeing Puerto Rico’s finances has concluded it won’t have a sufficient surplus to cover bondholders’ settlement payments under its current debt-adjustment proposal.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.