Page 12 - ARUBA TODAY

A12 WORLD NEWS
Tuesday 14 March 2017

Board to Puerto Rico: Cut pension system, impose furloughs

loughs and the elimination take effect on July 1 unless
of Christmas bonuses. the government proposes
“That’s my goal,” he said other cost-saving mea-
by phone. “We’re taking sures. In addition, all Christ-
bold steps to making sure mas bonuses could be
the economy gets jump- eliminated by fiscal year
started. We’re very much 2018.
well on our way.” “This is barely the end of
Elias Sanchez, the gover- the beginning of a long
nor’s representative to the process to get Puerto Rico
board, told the AP that on the road to economic
the territory’s government growth again,” said board
hopes to avoid at least the member Jose Ramon Gon-
first round of furloughs by zalez. “There are no sim-
proving it will have $200 ple, no easy, no painless
million in cash reserves by solutions to the problems
June 30. that have built up over 20
Sanchez praised the years.”
board’s approval, saying, Puerto Rico racked up
“It’s a well thought-out debt in recent decades by
plan that doesn’t hide the borrowing to balance its
fact that we face great budget even as its econo-
challenges.” my was sputtering. In June
Puerto Rico Gov. Ricardo Rossello attends a forum in San Juan, Puerto Rico. A federal control However, the board and 2015, the island’s former
board on Monday said Puerto Rico needs to cut its public pension system by 10 percent, furlough Puerto Rico’s government governor announced that
tens of thousands of government workers and eliminate Christmas bonuses if it cannot generate
other kinds of savings amid an economic recession. still disagree about cuts public debt totaling more
(AP Photo/Carlos Giusti) to the island’s public pen- than $70 billion was unpay-
DANICA COTO sented by the island’s gov- tial services.” sion system that would hit able, and the island has
hundreds of thousands of defaulted on millions of
Associated Press ernor. The measures will be Skeel and other board government workers. The dollars owed since then,
SAN JUAN, Puerto Rico (AP) implemented if the govern- members who met in New system faces $50 billion in li- forcing U.S. Congress to
— A federal control board ment fails to find other ways York said the plan calls for abilities and is expected to step in and sparking a bar-
on Monday said Puerto to cut spending and gener- everyone on the U.S. terri- run out of money by year’s rage of lawsuits filed by an-
Rico needs to cut its public ate revenue. tory of 3.4 million people to end. Board members said gry creditors. Hundreds of
pension system by 10 per- Board members said the make sacrifices. they will protect the most Puerto Ricans blocked traf-
cent, furlough tens of thou- spending cuts will be nec- Gov. Ricardo Rossello vulnerable retirees and fic along one of the capi-
sands of government work- essary so the government had resisted some of the ensure no one is pushed tal’s main roads to protest
ers and eliminate Christmas will have enough funds to board’s cuts, arguing they below the federal poverty the approved plan, and
bonuses if it cannot gener- pay for essential services would fall too heavily on line. more protests are expect-
ate other kinds of savings such as education, health many living in Puerto Rico, The board will make rec- ed in upcoming days.
amid an economic reces- and public safety. which faces nearly $70 bil- ommendations by next The plan drafted by the
sion. “Puerto Rico is about to lion in public debt that it is month on what kind of pen- government and ap-
The seven-member board capsize,” said board mem- seeking to restructure. He sion changes will be imple- proved by the board also
created by Congress to ber David Skeel. “The island told The Associated Press mented, but it said the sys- will cap some Medicaid
oversee the U.S. territory’s is overwhelmed by debt. that he was pleased with tem will switch to a pay-as- benefits, effectively raise
finances voted unanimous- Puerto Rico is in real danger the plan and is confident you-go method and that property taxes and scrap
ly to add those measures of running out of money for his administration will find teachers and public safety some infrastructure proj-
to a 10-year fiscal plan pre- even the most basic essen- ways to head off the fur- workers will be enrolled in ects while possibly turning
Bus runs into crowd in Haiti, killing at least 34 Social Security by 2020. ferries, ports and parking
Currently, teachers and lots over to private com-
PORT-AU-PRINCE, Haiti (AP) at a bus stop and then con- before police rescued the police officers in Puerto panies. It will freeze salaries
— A bus plowed into peo- tinued into a crowd of peo- passengers aboard. The Rico do not receive Social until 2020, seeks to privatize
ple taking part in an early ple participating in a Rara bus driver fled and was be- Security. the generation of power
morning street festival in festival, an Easter season ing sought. Faustin said the Meanwhile, the board de- and increase traffic and
Haiti this weekend, killing at Haitian musical celebra- cause of the accident was manded furloughs of four motor vehicle license fees
least 34 people and injuring tion, said Josepth Faustin, unclear. days a month for govern- by 10 percent. It also will
17, rescue officials said. civil defense coordinator The injured were being ment workers and two lead to more than $300 mil-
The accident occurred for the Artibonito region. treated at a hospital in Go- days a month for teachers, lion in cuts at Puerto Rico’s
around 3 a.m. in the city of Faustin said angry festival- naives, about 60 miles (100 saying the step would save largest public university
Gonaives when a passen- goers then attacked the kilometers) northwest of the up to $40 million in savings and a tax increase on to-
ger bus first hit two people bus and tried to burn it capital.q a month. The furloughs will bacco products.q