The Trump Administration will Deal with Puerto Rico’s Debt

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The Trump administration seems reluctant to wipe out the debt of Puerto Rico despite the promise by the president to do so. This is an indication that the Commonwealth Island will have to fight its own battles after the island has been hit by two major hurricanes since summer. Director of Office of Management and Budget Mick Mulvaney mentioned that he wouldn’t take the words of the president seriously. He was speaking to the CNN and was addressing the promise to clear the island’s debt by Donald Trump. He further said that the government of the United States would continue with the efforts to rebuild Puerto Rico. However, he made it clear that the island had to continue with its restructuring efforts especially in relation to the debt issue. He said that the island must find out a way to fix the errors that had been made in the past generations in relation to finance. According to a person who is close to the President and familiar with the plans to assist the island, he said that the president wanted the creditors to understand the nature of the problem. This was geared towards making them realize that priorities ought to change in regards to Puerto Rico.

The same person said that the United States knows that there is an urgent need for cash in Puerto Rico. As a result, the federal government will be addressing the issue by relaxing some restrictions towards the commonwealth in regards to infrastructure construction, health and housing issues affecting the island. This makes it clear that the funds will be directly channeled to the island, therefore, bypassing the creditors. However, the close person to the changes spoke on the condition of anonymity as the debt situation could change at any moment. In the past few years, the small island of Puerto Rico has fought with its investors and creditors for a sum of $75 billion. The creditors want the federal government to take up this debt. Earlier on, Mr. Trump told Fox News in an interview that his administration was looking for a way to help Puerto Rico wipe out its current deal. He said that this would go a long way in helping the island recover from Hurricane Maria. However, the president didn’t give the specifics of the deal, but he said that they were going to do something amazing. While speaking to Geraldo Rivera, Trump promised to look into the whole debt structure.

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