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WORLD NEWSThursday 10 September
LATIN BRIEFS Puerto Rico unveils fiscal reform plan, braces for cuts
Ecuador says to DANICA COTO new hires, salary increases of this year if action is not as scheduled because it
shut down press Associated Press and collective bargaining taken and warned that the could affect essential ser-
freedom group SAN JUAN, Puerto Rico (AP) agreements. government would face a vices. Officials warned that
— Puerto Rico is bracing Gov. Alejandro Garcia liquidity crunch next year if a compromise with credi-
QUITO, Ecuador (AP) — Ec- for widespread spending Padilla acknowledged in the plan is not implement- tors is needed to avoid
uador’s government has cuts after the government a televised address that ed. what they called a disor-
initiated proceedings to released a long-await- Puerto Ricans already It is unclear how creditors derly default and legal mo-
shut down the South Amer- rass. “The plan itself will not
ican nation’s sole remain- New York Gov. Andrew Cuomo greets a bystander during a visit to a local market in San Juan, get us out of the hole we
ing press freedom group. find ourselves in,” Garcia
It accuses Fundamedios of Puerto Rico. Cuomo and a delegation of top state officials met with Puerto Rico’s Gov. Alejandro said. “It’s time that credi-
political partisanship. Fun- tors come to the table and
damedios director Cesar Garcia Padilla this week to develop what he called a historic partnership with the U.S. territory to share in the sacrifice.”
Ricuarte said Wednesday One of the plan’s main
that the watchdog group help it emerge from a deepening economic crisis. (AP Photo/Ricardo Arduengo) proposals is the creation
was notified Tuesday in a of a control board, whose
letter from the Communi- ed fiscal reform plan on have had to endure new and bondholders will react five members would be
cations Secretariat. Ricu- Wednesday that would re- taxes, an increase in utility to the plan, which address- appointed by the gover-
arte said Fundamedios duce much of the island’s bills and layoffs during a es only $47 billion of the is- nor but would take into
was targeted for unflag- $72 billion public debt and nearly decade-long eco- land’s public debt and still account suggestions from
gingly denouncing gov- calls for restructuring the nomic stagnation. requires approval by Puer- creditors and potentially
ernment attacks on Ecua- remainder at the expense “Our island faces an un- to Rico’s legislature and the federal government.
dorean journalists. The let- of bondholders. precedented fiscal and governor. Garcia has said The board would oversee
ter says the organization’s The five-year plan propos- economic crisis,” he said. the $72 billion public debt implementation of the
publication of blogs with es that the government cut “We have asked our peo- is unpayable and needs plan and have oversight
political analysis and opin- subsidies to municipalities ple for many sacrifices.” restructuring. of most public corpora-
ion are what make it par- and the University of Puerto During a background brief- Even if the plan is imple- tions including the Govern-
tisan. Ricauarte called the Rico, offer early retirement ing late Tuesday, members mented, officials warned ment Development Bank,
accusation absurd. He said and reorganize or merge of the group that worked the government would still but not the power or water
the government gave the state agencies. It also on the plan said Puerto face a $14 billion financing and sewer companies.
group 10 days to respond. calls on the government Rico’s Government Devel- gap from 2016 to 2020, and The group suggested that
The Associated Press called to extend until 2021 leg- opment Bank would run that it would not be able the board could impose
the Communications Sec- islation that would freeze out of money by the end to meet debt payments sanctions, including a ban
retariat and was told no on entering into contracts,
one there would have any automatic expense cuts
comment.q and automatic hiring freez-
es if the government does
President Morales not comply with the plan.
expected to seek Among the other propos-
4th term in Bolivia als in the nearly 80-page
plan are government in-
LA PAZ, Bolivia (AP) — Presi- vestment in public-private
dent Evo Morales’ back- partnerships, creation of
ers are seeking to amend an earned income tax
Bolivia’s constitution so he credit, reduction of nomi-
can run for re-election in nal corporate tax rates
2020. The plan finalized and a 10-year waiver from
Tuesday night comes just future minimum wage in-
eight months after Bolivia’s creases for workers young-
first indigenous president er than 25 to help increase
won a third term. Morales’ the number of job offers.q
backers control the two-
thirds of congress needed Brazil taxi drivers protest Uber in Sao Paulo
to pass the legislation. After
that, voters would decide in SAO PAULO (AP) — Thou- measure before it takes ef- ers who ignore the ban least another 13 state capi-
a referendum. Farmworkers sands of taxi drivers can be fined 1,700 reals tals have laws pending ap-
union leader Gustavo Ali- blocked streets and av- fect. ($447) and have their cars proval to ban the service.
aga said Wednesday that enues in Brazil’s largest city confiscated. In Maceio, capital of
the bill will be sent to con- on Wednesday to protest In its first vote on June 30, The service has drawn in- the northeastern state of
gress next week. Morales against the Uber ride-shar- creasing use since last Alagoas, city councilman
told reporters Monday that ing service. the council voted 48-1 to year’s World Cup of soc- Galba Netto recently told
he backs the referendum. The protest took place be- cer, with many of its cars reporters: “We are trying to
Former President Jorge fore the required second prohibit the use of smart- cleaner and newer than prevent a future problem,
Quiroga says it will create vote by Sao Paulo’s city those of regular cabs. because the arrival of Uber
a monarchy. Morales’ ap- council on a measure that phone-based services Cab drivers complain Uber in our city would be a di-
proval rating in the latest would ban Uber in the city is unfair competition be- saster.”
polls tops 50 percent. But of 12 million. The city coun- such as Uber. cause its drivers don’t have On its Facebook page,
he is beginning to grapple cil’s press office said a vote to pay city fees or undergo Uber said people “who
with economic woes owing was not expected until Rio de Janeiro’s city coun- official inspections. cross the city every day
to Bolivia’s heavy depen- early Wednesday night. To prevent the expansion have the right to choose
dence on exports of natu- Mayor Fernando Haddad cil has banned Uber, but of Uber elsewhere in the how they will travel the
ral gas and minerals, which would have to ratify the country, city councils in at streets of Sao Paulo.”q
are fetching lower prices.q Mayor Eduardo Paes must
still ratify it.
Uber has been banned in
Brasilia and Belo Horizonte,
the only other two cities
where the service is pres-
ent.
If the measure goes into ef-
fect, Sao Paulo Uber driv-
