President Donald Trump misses Puerto Rico’s $ 74 billion obligation to be addressed through the bankruptcy process established under a principle overtaken last year, White House press secretary Sarah Huckabee Sanders said , not omitted, as he suggested in television broadcasting interview.
” There’s a process for how be addressed with Puerto Rico’s debt. It will have to go through that process to have a long-lasting recovery and proliferation. This is a process that was put in place and lay out under Obama ,” Sanders told reporters at the White House on Thursday.” The chairperson craves it to go through that process, and that’s the stage we’re at on that .”
Her mentions were another assault by administration officials to clarify Trump’s intents regarding the territory’s debt after he sounded the $3.8 trillion municipal bond market on Tuesday with an interview suggesting he wanted its external debt eliminated.
” We have to look at their whole indebtednes structure ,” Trump said in a Fox News interview.” They owe a lot of money to your best friend on Wall Street. We’re going to have to erased that out. That’s going to have to be — you know, you can say goodbye to that. I don’t know if it’s Goldman Sachs but whoever it is, they are able to motion goodbye to that .”
White House bureaucrats soon sought to walk back the statement. Trump’s budget director, Mick Mulvaney, said Wednesday morning — as Puerto Rico’s bond prices droop to a record low — not to take Trump literally.
” I think what you heard the president say is that Puerto Rico is going to have to figure out a acces to solve its debt question ,” Mulvaney said.
The price of Puerto Rico bonds rallied after Mulvaney’s comments and were little-changed on Thursday, steady-going after the rout activated by Trump’s statements. Its general-obligation bonds due in 2035, one of the most actively traded insurances, changed sides for about 38 pennies on the dollar, approximately where the toll shut on Wednesday.