Puerto Roci Governor Alejandro Garcia Padilla declares GDB At State Of Emergency
The Government Development Bank (GDB) has been declared as a state of emergency by Gov. Alejandro Garcia Padilla and with this the Puerto Ricans would only receive essential government services.
According to the governor, the latest step would halt erosion of dwindling liquidity of the bank by only permitting to fund necessary costs for public safety, health and education services.
Garcia added the GDB is also in talks with creditors as by May a payment of about $423 million would be due.
The government gets emergency powers to deal with fiscal crisis under the newly enacted Puerto Rico Emergency Moratorium and Financial Rehabilitation. The power extends declaring a moratorium on all bond payments.
Restructuring may take time and in the order the governor mentions, “the commonwealth has a duty to take any and all actions reasonable and necessary to protect the health, safety and welfare of its residents by ensuring the continuation of essential services.”
Garcia had announced in June 2015 about $70 billion debt was not payable and thereafter a deal was struck with creditors for restructuring the Electric Power Authority’s about $9 billion debt.
Meanwhile, the United States House Natural Resources Committee is learned to be considering legislation in coming few days to provide bankruptcy powers to the country.http://www.dailynewsz.com/puerto-roci-governor-alejandro-garcia-padilla-declares-gdb-at-state-of-emergency/http://www.dailynewsz.com/wp-content/uploads/2016/04/Puerto-Roci-Governor-Alejandro-Garcia-Padilla-declares-GDB-At-State-Of-Emergency-1.jpghttp://www.dailynewsz.com/wp-content/uploads/2016/04/Puerto-Roci-Governor-Alejandro-Garcia-Padilla-declares-GDB-At-State-Of-Emergency-1-300x300.jpgBusinessgdb,government development bank,puerto rico