WASHINGTON – Republican presidential candidate Donald Trump said on Thursday that Puerto Rico has to “cut its debt way down” in order to survive.
“Puerto Rico has too much debt, so you can’t just restructure” Trump told Wolf Blitzer from CNN in an interview. “You have to use the laws and cut the debt way down and get back to business because they can’t survive with the kind of debt they have.”
Trump said he doesn’t support a U.S. bailout for Puerto Rico.
“They have to solve the problem,” Trump said. “I think frankly Puerto Rico’s better off if we don’t because they’ll cut the bonds. They’ll cut them way down ….. The problem with Puerto Rico [is] they have far, far too much debt.”
Blitzer’s initial question about Puerto Rico’s debt crisis led Trump to complain about the growing U.S. debt.
Trying to get Trump back on topic, Blitzer asked if Puerto Rico should be given an opportunity to file for bankruptcy protection under Chapter 9 of the U.S. Bankruptcy Code, just as local governments can do in the U.S. if permitted by their states.
But Trump seemed too busy touting his own experience to answer the question. He did not seem aware that Puerto Rico cannot declare bankruptcy.
“I’m the king of debt. I love debt,” he told Blitzer. “As a very successful person I would buy companies, throw them in a chapter, bankrupt it, negotiate. I would do great deals. I didn’t use them for myself; I used them as a business person, like others do. Many of the top people in my category used the laws. I know more about debt than practically anybody. I love debt. I also love reducing debt. And I know how to do it better than anybody.”
Asked again by Blitzer if Puerto Rico should have the option of bankruptcy, Trump said, “They’re going to have no choice …. If they don’t have the money, they’re not going to pay the interest, whether they officially declare or not.”
“And the United States is going to be in that position soon because they have too much debt,” Trump added.
