Puerto Rico Leader Says He Would Sue to Block PROMESA

The Bond Buyer reports:

The president of Puerto Rico's majority party, David Bernier, said he would sue to stop the proposed federal bill to impose a fiscal control board.

Bernier, who is running for governor, slammed H.R. 5278, known as PROMESA, on Wednesday, after the House Natural Resources Committee voted 29-to-10 to approve it, and sent the measure to the full House. Other Puerto Rico leaders expressed sentiments ranging from opposition to hedged support.

The bill's control board would have the power to require Puerto Rico's government to pass balanced budgets and budget plans. It would allow the board to override decisions by Puerto Rico's elected government.

If passed, the bill would also allow the board to file debt restructuring petitions on behalf of the commonwealth in a federal district court.

When asked about PROMESA on Wednesday, Bernier said he would go to all necessary channels to defend Puerto Rico's constitution, according to his spokeswoman. Bernier is concerned that the board would override Puerto Rico's democracy. It puts unelected people in charge of Puerto Rico's finances, he said.

A story to watch.