In this week’s round-up show, Cate Long and Gil Hall discuss and analyze events from Puerto Rico. Topics include:
- Cates recaps her recent trips to Capitol Hill.
- May 1st: major GDB debt payment due. Will Puerto Rico default? Cate says it wouldn’t be the end of the world.
“There is this crisis narrative that has developed … that the government wouldn’t be able to provide police services or have teachers in the schools. I think thats’ really way overblown. It would be terrible if the government defaults and they have litigation about these things, but it won’t stop the government … everybody needs to take a step back and take a deep breath here. Defaulting on a bond is not driving off a cliff. It’s not smart, but it’s like not paying your credit card bill. They don’t come and close your house down.”
- Center for the New Economy’s proposal: fiscal responsibility legislation as an alternative to control board?
- Updated version of the García Padilla administrations’ bondholder proposal expected
- VAT/IVA implementation update (note: this program was recorded prior to the Puerto Rican government’s announcement Monday night that VAT will, in fact, be postponed for two months)
- Cate will participate on Tuesday, March 8, 2016 at 1PM ET in a debate on Puerto Rico’s debt at the Council on Foreign Relations. The other panel members are Richard Ravitch (former lieutenant governor of New York) and Brad Setser (former Deputary Assistant Secretary at the US Treasury department.) The debate will be live streamed on the CFR’s website, and will be moderated by Wall Street Journal reporter Aaron Kuriloff
Cate Long: @cate_long
Gil Hall: @gillamhall