Over 100 local state-side government officials signed a letter calling for Puerto Rico to be allowed to declare bankruptcy.
New York City Bronx Borough President Ruben Diaz Jr. issued the letter, dated Aug. 11, to Chairman of the U.S. Senate Finance Committee Orrin Hatch, Chairman of the U.S. Senate Judiciary Committee Charles Grassley, and Chairman of the U.S. House of Representatives Judiciary Committee Bob Goodlatte. All three legislators are Republicans.
"Congress' failure to address this crisis presents a substantial threat not only to the economy of Puerto Rico, but the United States economy as well," the letter reads. It urges the legislators to support bankruptcy not only for the commonwealth's public corporations and municipalities but also for the commonwealth's own debt.
In the 50 states bankruptcy is available only to public corporations and local governments. State governments are ineligible.
Local and state officials from New York are the overwhelming majority of the signatories, with representatives from a few other states signing on as well.
Bills to allow Puerto Rico's public corporations and municipalities to declare bankruptcy have been presented in the U.S. Senate and House of Representatives.
