Puerto Rico Is Running Out of Money

Puerto Rico faces a government shutdown on Oct. 31, including stopping its hurricane recovery, if Our elected representatives doesn’ t provide billions within emergency funds, said Treasury Admin Raul Maldonado.

The particular U. S. commonwealth’ s broke government is burning through the $1. 6 billion it had accessible before Hurricane Maria ravaged the particular island,   destroying decayed facilities and killing 34 people. Along with widespread damage to telecommunications systems as well as the electricity grid, Maldonado doesn’ to expect to begin collecting sales taxes for at least another month, he or she said Wednesday.

“ I don’ t have any kind of collections, and we are spending lots of money providing direct assistance for the crisis, ” he said in an job interview in San Juan. “ With no assistance from Congress, Puerto Rico’ s i9000 government will not be able to operate the following month. ”

While attention has focused on the particular commonwealth’ s staggering $74 billion dollars debt, Puerto Rico faces an even more immediate crisis in the wake from the storm. It’ s running lacking money for fuel, salaries associated with recovery workers and food help. Meanwhile, only 8. 6 % of customers have electricity, mobile-phone company is sharply curtailed and many tremendous mountain rural areas remain inaccessible.

System Stopped

“ You have conservatively over hundred, 000 homes that are destroyed right here, ” Governor Ricardo Rossello mentioned an interview Wednesday.

“ Essentially you’ re looking at absolutely no revenue for the next couple of months, ” he said. “ While you possess zero revenue, you still have expenditures, in addition emergency expenditures. That means the money will run out very quickly. "

Maldonado said he has requested in between $6 billion and $8 billion dollars in aid from Congress to keep the federal government running for “ a few months. ”

The treasurer stated he has set aside funds to make payroll and pension payments in Oct. But if Congress fails to act, this individual said the island is dealing with a " total shutdown” upon Nov. 1 that would curtail important services and the distribution of help.

United states senate Majority Leader Mitch McConnell stated in a press statement that the United states senate stands ready to help. House Loudspeaker Paul Ryan’ s office didn’ t respond to a request to talk about the Oct. 31 run-dry time.

Nancy Pelosi, the particular Democratic House minority leader, stated earlier Wednesday that the Treasury Division should extend a loan to help Puerto Rico in the short term.

Many billions more will be needed for extensive recovery efforts. In Washington, the particular Trump administration is finalizing the $29 billion disaster-aid request addressing a series of major storms in the Oughout. S. But Puerto Rico’ h control board, created by the law that will allowed the commonwealth to get into bankruptcy, has said Maria may have triggered as much as $95 billion in problems, more than the island’ s yearly gross domestic product.

The federally appointed board, that has broad oversight over the island’ h finances, requested for immediate help Tuesday. In a letter the section sent congressional leaders, the authorities asked the federal government to make low-interest financial loans available to ease the impending liquidity crisis.

“ Failing to provide the greatest amount of federal help and the emergency liquidity program is going to be potentially ruinous, " chairman Jose Carrion wrote. " We must perform all that we can to help Puerto Vasto avert a tragedy of historical proportions. "

The particular panel also asked that the government waive cost-sharing limits, disaster investing caps and grants for long lasting relief.

If Our elected representatives doesn’ t act, Maldonado stated, “ it will be a disaster. ”