In the latest installment of Muni Minute, The Bond Buyer's 60-second video series that examines a top municipal market story of the coming week, we take a look at the situation in Puerto Rico. Congress is set to hear testimony on Thursday on how to fix the Commonwealth's ailing economy while the recent death of U.S. Supreme Court Justice Antonin Scalia may complicate cases involving the island that remain before the court.
VOICE OVER: Congress is set to hear the latest treasury department prescription aimed at curing Puerto Rico's ailing economy. Treasury's Antonio Weiss will testify before a House Panel on Thursday about and island specific restructuring plan that Congress could okay using the powers it has under the constitution territorial clause. The final package is also likely to include the creation of a financial oversight board. The house is working under a March 31 deadline to produce a package to help Puerto Rico which is struggling with about $70 billion in debt and has already defaulted on several bond payments.
Coming up the US Supreme court with their arguments on March 22nd over an appeals court ruling that said a Puerto Rico restructuring statute for it's authorities is illegal under federal bankruptcy law. But the recent death of high court Judge Scalia and a possible recusal of Justice Alito from this case, the liberal wing of the court may have more powers to reverse that rule. I'm Chip Bonnet and this has been your Muni minute.