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Leading House Republicans on Tuesday outlined their plan, which
would steer creditors and holders of Puerto Rico bonds toward a
new, independent board that would seek a fair way to write down
an estimated $70 billion in debt.
In a statement released late Tuesday, Pelosi said the
Republicans' proposal needs changes "to improve the makeup and
scope of the board and streamline the restructuring process to
make it more workable."
Pelosi said Democrats are concerned "about the negative impact
of the legislation on working people in Puerto Rico, as well as
the effects of transferring federal lands on Vieques without
providing for strong conservation protections."
But, she added, Democrats are working with Republicans on the
legislation. "The problems in the bill are fixable and we hope
they will be remedied very soon," she said.
On Wednesday, the House Natural Resources Committee will begin
work to amend its proposal before voting on the measure. If it
passes, the bill would go to the full chamber for a vote.
Many investors would face a loss under the plan and are lobbying
members of Congress in a bid to protect their bottom lines.
The rescue plan also adopts some principles of bankruptcy law,
and some lawmakers have balked at the idea of letting Puerto
Rico modify its bonds, saying it would create chaos for
municipal markets.
U.S. House Speaker Paul Ryan said on Tuesday he supported the
measure. He will need to win over fiscally conservative
Republicans, and likely some Democrats, to get the bill through
the chamber.
(Reporting by Susan Heavey and Richard Cowan; Editing by Jeffrey
Benkoe)
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