Sorry, not sorry. Puerto Rico’s debt to the United States will not be forgiven.
Before you jump down President Trump’s throat, you should probably know:
- Trump presented the idea as a way for the U.S. territory to deal with their hurricane damage
- The Administration has said ‘No, they will pay’
The island owes the United States upwards of $70 billion. Yikes.
White House Press Secretary Sarah Huckabee Sanders said during a press conference that their best bet is to deal with their debt by using the ‘normal process’.
She said, “There’s a process for how to deal with Puerto Rico’s debt, and it will have to go through that process to have a lasting recovery and growth.”
Sanders added, “That is a process that was put in place and set up under [former President] Obama, and has a board of advisers that deals with that debt. It’ll go through that process as we move forward.”
Trump appeared to signal an openness to wiping out Puerto Rico’s debts during an interview with Fox News on Tuesday, a claim that sent markets spinning with the possibility that creditors would not be paid back. Puerto Rico’s bonds reportedly plunged upon those comments.
“They owe a lot of money to your friends on Wall Street and we’re going to have to wipe that out,” Trump said. “You can say goodbye to that.”
The administration has worked over the past few days to walk back those comments. Office of Management and Budget Director Mick Mulvaney told CNN on Wednesday that Trump should not be taken “word for word” and later told Bloomberg News, “We are not going to pay off those debts.”