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A12 WORLD NEWS
Friday 5 May 2017

Puerto Rico faces uncertain future as debt saga unfolds

al from the federal control people have left for the
board that was authorized U.S. mainland in the past
by Congress last year to decade to flee the crisis.
oversee the island’s financ- Islanders fear the situation
es. could worsen under the
The decision to resolve a court process, and federal
portion of the debt in court control board chairman
is the largest effort ever Jose Carrion noted that
made by a U.S. govern- consensual negotiations
ment to shield itself from with bondholders are pref-
creditors. It’s unknown how erable.
long the bankruptcy-like He and Gov. Ricardo Ros-
process will take, although sello stressed that despite
local government officials activating a process to re-
believe it could be resolved structure a portion of Puer-
in four years. to Rico’s debt in court, they
During that time, econo- are still pursuing talks with
mists and analysts warn, creditors.
many changes could oc- “We are willing to renegoti-
cur. ate the terms,” he said on
“It’s going to be uncomfort- Thursday.
able for some,” Barbarosh Rossello said that if the gov-
said. “It could mean ev- ernment reaches an agree-
erything from slightly higher ment with some creditors
People carry a large Puerto Rican flag as they protest looming austerity measures amid an eco- taxes to ... modest adjust- involving more money
nomic crisis and demand an audit on the island’s debt to identify those responsible, in San Juan, ments to noncritical ser- than originally offered, he
Puerto Rico. vices ... to concessions by would have to adjust the
(AP Photo/Danica Coto)
bondholders ... They’re go- budget, which was submit-
ing to pull all the different ted to the board but has
By DANICA COTO pated the island’s move lot can and will happen.” levers.” not been made public. He
Associated Press Wednesday to seek a In the next couple of days, Puerto Ricans already have stressed that if that hap-
SAN JUAN, Puerto Rico (AP) bankruptcy-like process the chief justice of the U.S. been hit with new taxes, pens, it would not lead to
— Uncertainty is spreading amid a 10-year recession, Supreme Court is expected higher utility rates and cuts new taxes or more austerity
across Puerto Rico and the but no one can predict to appoint a federal dis- to public employee ben- measures.
U.S. municipal bond mar- what lies ahead. trict court judge to over- efits, among other things. “I’m telling you that as gov-
ket now that the U.S. terri- “Think about it as a mar- see Puerto Rico’s case. The Many also have struggled ernor, I am not going down
tory has taken an unprec- athon,” said Craig Bar- judge will ultimately decide to find jobs on an island a road that would force the
edented step into federal barosh, a bankruptcy law- how and which Puerto Rico of 3.4 million people with people of Puerto Rico to
court to restructure a por- yer with the firm Katten assets will be distributed to an unemployment rate make more sacrifices than
tion of its $73 billion debt. Muchin Rosenman. “Today bondholders. However, the that has hovered around they’ve already made,” he
Many economists antici- is the beginning of mile 1. A judge will first need approv- 12 percent. Nearly 450,000 said. q

Raul Castro’s daughter: His successor may surprise Cubans

Associated Press he plans to step down in outside the Castro fam- of Cuba’s National Assem- driguez, a forceful public
HAVANA (AP) — One of the February. International and ily since 1959. When asked bly and head of the coun- speaker who has represent-
highest-profile members of domestic observers wide- about the succession pro- try’s institute of sex educa- ed Cuba on the interna-
Cuba’s ruling family said ly expect him to be suc- cess, Mariela Castro said: tion. She has long been tional stage for eight years.
Wednesday that the coun- ceeded by First Vice Presi- “Sometimes you’re going in one of Cuba’s most out- Rodriguez has taken on a
try could be surprised by dent Miguel Diaz-Canel, a one direction and suddenly spoken public figures, and slightly higher profile in re-
the person who succeeds 57-year-old career Com- you look over here and go, her statements are widely cent months, including an
her father as president. munist Party official whose ‘Wow, how interesting, I perceived to bear her fa- unusual article in state me-
Mariela Castro’s uncle Fidel low-wattage public ap- hadn’t focused on this per- ther’s imprimatur. dia last week apologizing
led Cuba for a half century pearances have left many son.’” “There are always Recent speculation about to the family of a Cuban
before he was succeeded Cubans unconvinced of surprises,” she concluded. alternate presidential can- who died on government
as president by her father, his ability to be the first Mariela Castro is a gay- didates has focused on business in Venezuela last
Raul Castro, who has said top Cuban leader from rights advocate, member Foreign Minister Bruno Ro- May.q