Puerto Rico Gov. Alejandro García Padilla appointed Víctor Suárez Meléndez to lead the commonwealth's debt restructuring and oversee its management of debt.
The governor announced the appointment Tuesday in a press statement.
Puerto Rico's public sector entities owe about $70 billion in debt. García Padilla has said that the entities cannot pay the debt given current rates of economic growth. He has also said that the government doesn't have enough money to pay about $423 million that the Government Development Bank for Puerto Rico owes on May 1.
On April 6 the governor signed a bill opening the door for certain emergency actions to be taken at the GDB, allowing him to declare moratoriums on debt service payments, and establishing an authority to oversee the restructuring of all of Puerto Rico's public sector debt.
On Tuesday García Padilla created the Financial Advisory Authority and Fiscal Agency. As executive director of this new body, Suárez Meléndez is to oversee matters relating to restructuring or adjusting debt obligations for all public sector bodies.
As Puerto Rico's Secretary of State, Suárez Meléndez meets with the representatives of foreign nations and promotes Puerto Rico's trade and other interests with them. The Secretary of State also manages a variety of business-related services at the State Department.
Suárez Meléndez has been a member of the Working Group for Fiscal and Economic Recovery, which has created the commonwealth's blueprint for dealing with its fiscal, debt and economic troubles. Prior to being Secretary of State, he was the governor's chief of staff.
Up to now Melba Acosta Febo has been the most visible voice on Puerto Rico's debt problems. She is the commonwealth's chief financial officer and president of the GDB. The government has taken steps towards closing and possibly replacing the GDB. It remains to be seen whether she or Suárez Meléndez will lead the government's debt restructuring in practice.
