Page 12 - ARUBA TODAY

A12 WORLD NEWS
Thursday 23 March 2017

Puerto Rico’s sole deal with bondholders in jeopardy

DANICA COTO a U.S. congressional hear- back changes made to the “The government wants punitive proposal for power
Associated Press ing that the deal made by 15-month-old deal, which to jam us into pay-nothing customers who will have
SAN JUAN, Puerto Rico the previous administration expires March 31. Rossello bonds,” he said. “Without to pay higher rates under
(AP) — The sole tentative did not call for significant requested the deadline a deal, (the power com- a deal that preserves the
debt restructuring deal that concessions from certain be extended to May 1, the pany) faces either a liquid- power company’s monop-
Puerto Rico reached after creditors and might affect same day an overall stay ity crisis or a large, immedi- oly while blocking competi-
two years of negotiations the utility’s ability to update on lawsuits filed by credi- ate rate hike.” Power bills tion from the private sector
is in jeopardy after fed- its aging infrastructure and tors is to expire amid mul- in Puerto Rico are already and alternative energy,” it
eral control board officials offer more affordable rates, timillion-dollar defaults by on average twice those of said. If the current deal is
said Wednesday that they among other things. Puerto Rico’s government. the U.S. mainland, which upheld, bondholders who
would support the U.S. ter- “The goal is to be able to Rossello’s comments has long spooked poten- bought the utility’s debt
ritory’s push to amend the deliver reliable energy at sparked concern among tial investors and led to a would likely face fewer loss-
agreement. sustainable rates to the bondholders who already growing number of unpaid es than those who bought
Many believe changes people and businesses of agreed to a 15 percent bills on an island whose po- bonds issued by other
to the deal could mean Puerto Rico,” he said. “That cut, among other things. litical leaders are seeking to Puerto Rico government
a deeper cut for investors vision includes a successful Stephen Spencer, with the restructure some $70 billion agencies. Rossello told U.S.
who bought bonds issued restructuring of” the power Los Angeles-based invest- in public debt. legislators that he prefers
by the island’s troubled company. ment bank Houlihan Lokey, Others echoed the gover- to try to reach a new deal
public power company, Members of a federal con- an adviser to bondholders, nor’s message, including with the power company’s
which has a total debt of trol board that oversees the said he was concerned the Association of Industries bondholders before opting
$9 billion. Puerto Rican government’s about the deal falling of Puerto Rico. for a restructuring process
Gov. Ricardo Rossello told finances said they would apart. The debt agreement “is a similar to bankruptcy.q
New prime minister urges Haitians to heal deep divisions

DAVID McFADDEN ed the Rotary Club in the
Associated Press commercial district of Pet-
PORT-AU-PRINCE, Haiti (AP) ionville, was the first pick of
— Haiti’s new prime minis- President Jovenel Moise to
ter late Tuesday urged this oversee the Cabinet and
deeply polarized country run the government’s day-
to bridge divisions, and to-day operations.
he vowed to bring steady He has said agriculture
advances even while ac- will be the government’s
knowledging that the strug- investment priority, echo-
gling nation has no short- ing comments by Moise,
age of accelerating prob- who was an agricultural
lems. entrepreneur before being
Dr. Jack Guy Lafontant, a elected president. During
physician and political out- his swearing-in ceremony,
sider approved as Haiti’s Lafontant said Haiti needs
No. 2 official after clearing “deep reforms” in the se-
a final parliamentary hur- verely underfunded health
dle early in the day, took sector, a “non-stop strug-
the oath of office in front of gle” against corruption,
politicians and dignitaries and improvements to edu-
on the grounds of the na- cation.
tional palace. Haiti’s new Prime Minister Dr. Jack Guy Lafontant speaks at the National Palace during a cer- There is little expectation
emony in Port-au-Prince, Haiti, Tuesday, March 21, 2017. Lafontant, a gastroenterologist and head
“Time is serious and the of the Rotary Club in the commercial district of Petionville, was ratified as Haiti’s Prime Minister on among Haitians that the
legacy is heavy. I inherited Tuesday. new government can over-
the prime minister’s job at a (AP Photo/Dieu Nalio Chery) come poverty and eco-
time when inflation is ram- nomic malaise in the next
pant, the depreciation of progress in what is one of pertise.” prove Lafontant and his five years, but Moise’s Tet
the (Haitian) gourd is accel- the world’s poorest and “The Haitian dream is possi- government policy. Six law- Kale party does have a
erating, and where agricul- most unequal countries will ble. It cannot be done with- makers voted against him, majority in Parliament and
ture, the main backbone be possible only by bring- out the unity of its daugh- two abstained and 95 vot- some are hopeful the busi-
of our economy, continues ing its people together and ters and sons,” he said. ed in favor. The Senate had nessman-turned-politician
to lose its competitiveness,” providing opportunities for After 19 hours of discussion, approved him previously. and his new prime minister
Lafontant said. citizens to demonstrate the Chamber of Deputies Lafontant, a gastroenter- will make steady improve-
He stressed that significant their “know-how and ex- voted early Tuesday to ap- ologist who formerly head- ments. q