The Puerto Rico is going through several financial troubles. In order to help the struggling government on the island, the congress is planning to form a control board. The federal intervention is on its way to normalize the situation. A South Carolina Republican, Jeffrey D. Duncan informed fellow representatives that Puerto Rico’s fiscal trouble should be managed.
He further added in his letter that the commonwealth needs management changes for the solution. The Washington.D.C experienced the creation of control board by congress around 1995. The representative is asking to use similar authority over the Puerto Rico. The Puerto Rico needs a financial control board controlled by the law making body.
Duncan also said that politically wise decisions are needed for the survival of the island. He chairs the House Foreign Affairs Committee’s western Hemisphere division. The commonwealth may fail to pay its debt. Many experts are pointing out towards a silent war between the government and creditors. The island may run out of cash anytime.
The massive debt restructuring is needed for reform. The Puerto Rico municipal bonds have attracted money of many investors from the Wall Street. These also include high yielding hedge funds. Debt investors from Puerto Rico are making sure that all efforts by the congress go in vain. This means that water and electricity providers on the island nation will be forced to declare bankruptcy. The public corporations have huge private investments at Puerto Rico. The large-scale fiscal management plan is needed for a permanent solution of the crisis.