WASHINGTON (Sputnik) — Establishing an unelected control board to oversee the economic recovery of Puerto Rico is a move in the wrong direction, Democratic presidential candidate and US Senator Bernie Sanders said in a press release.
"This undemocratic board would have the power to slash pensions, cut education and healthcare, and increase taxes on working families in Puerto Rico. That is unacceptable," Sanders stated on Thursday.
In August 2015, Puerto Rico defaulted on its $73 billion debt, and defaulted again on May 11 when it missed a $422 million payment. The US territory has since been beset by financial problems that affect basic services as well as economic growth.
The senator noted that the legislation also seeks to slash the minimum wage and relax labor laws in Puerto Rico.
Sanders renewed his call for the Federal Reserve to facilitate a restructuring of Puerto Rico’s debt by allowing the US territory to file for bankruptcy just as US states are allowed to do.