Bloomberg's House on Puerto Rico Restructuring Debt Bill(Audio)

seventy billion dollars worth of debt. That will be the first step towards ending a decade long recession in the island Commonwealth. And we're also going to take a look at the stock market under pressure today is traders and investors contemplate the possibility of a June rate hike by the Fed. Let's get back to the Bloomberg news room. Charlie Pellett has a Bloomberg business. Lael, all right, thank you very much. Kathleen Hayes, thank you, Phim Fox stock

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and again recapping a move law for US equities. The SMP five hundred index down nine now a drop of five tenths of one percent. I'm Charlie Pellett, and that's a Bloomberg Business Flash. This is taking Stock with Kathleen Hayes and Pin Fox on Bloomberg Radio. Can it be a breakthrough in the deadlock over Puerto Rico's debt between House Republicans and the Obama administration. Well, let's just find out.

From Billy House from Bloomberg Politics, Bloomberg News. He's joining us from Washington, d C. This is a story he's been covering very closely. In fact, I just tweeted out the story he co wrote with Laura Litvan at House in session. Welcome to taking stock. Good afternoon, So what's going on, what's in the deal, and does it look like this time this is something that's really going to pass? Well,

the boat counting begins. So the latter question there is is still up to two mendual members to decide how they're going to go on this latest rewrite of a bill to rescue Puerto Rico from its financial crisis. It's this bill, like the previous one, creates an oversight board UH and also creates a restructuring process for the island seventy billion dollar in debt debt UH. So it's it's

brand new. It was dropped right before UH midnight, introduced in the House, and all the the Treasures Department, along with top House leader Speaker Paul Ryan in the top Democrat Nancy Pelosi have signed off on that. Now. Of course, as we've seen in the past, will rank and file members join in cryan support of this as outside groups

still called the bill out billy have they? The lawmaker has been able to figure out how to handle the appointments to that seven member board that's supposed to oversee Puerto Rico's finances. Well, yeah, that's that's absolutely was one of the hang ups in the last few weeks, even involving constitutional questions about whether the administration or the White

House could be to congressional appointees and vice versa. What they've come up with as an elaborate system where there's categories of the board number seven and which they have overlapping rights and authority and different ways they can be appointed or blocked. But it's a cat home of rules. But they think they finally gotten that Reich cube that will allow it to be passed. So this bill is already of your story points out being perhaps at least

objections are being raised. Rather it means that he's going to vote against it. You quote a Representative John Fleming, a Louisiana Republican, he's a member of the ultra conservative House Freedom Caucus, saying they have to consider whether Congress will hold these states and territories responsible for their obligations

at cetera. And I guess what this is when I'm really driving out is the politics, because it's it's encouraging to see any kind of bill, you know, emerging now in the midst of this heated presidential race, and they're important races in the House and Senate as well, that could get a problem that's been festering for some time solved, is that when you hear from someone like Fleming, is he just posturing for the folks at home. Well that's

a good point. Uh. First of all, the back as a campaign here, as you point out, and the backdrop is also that some outside groups worried about their classifications of bonds or whatever, how they might be prioritized or bumped down in this restructuring process, will turn out that they are ads. They are running ads. In the past, they've classified this bill as a bailout. Now, Speaker Paul Ryan that will have the task of convincing his rank

and file members two come to the realization. At least, he argues, this is no way a bill out, no tax fair money will be used, and you have the political courage to vote for something he says, is absolutely necessary for the territory. UH already the House Freedom Practus, which of course was the the group that was always UH in in conflict with previous Speaker John Bayner says it is not ready to commit to this new bill.

But to be fair, the chairman Jim's Or in Ohio says that he has not read the new bill yet and he's withholding his judgment. Billy, the sort of battle that that goes on, it's because the island is spending a third of its revenue servicing its debt. Does this agreement do anything to alleviate the pressure on the economy, Well, it does it, uh. First of all, it will it provides a short stay of any litigation from creditors to otherwise go outside of this deal to to to get paid.

That that's a brief rest. It lasts toll at least February of next year. And now, of course that would be just a month after the elections of a new governor or governor at the same time. This, uh, this will allow categories of creditors to decide whether as a group, if enough of im agree to accept a prioritization scheme

or some sort of uh you know, haircut. Uh. So it's all those were combined with other financial oversight uh benefits at least in the view of the bill riders, that could help aid the territories government to to kind of wade through what it can on this enormous, enormous pressure. It's it's same. Thank you very much for spending time

with us and clarifying the situation. Billy House, House, reporter on our congressional team for Bloomberg News, coming to us from the capital in Washington, d C. Home to Bloomberg one and one oh five point seven h D two in the Washington metro area. Talking about Puerto Rico and House Republicans and the Obama administration reaching an agreement on restructuring Puerto Rican debt? Is it time to buy Apple? Google? Facebook? Keep it right here on Bloomberg Radio, we're gonna be

speaking with Loo Pianta Dosi from Eating Vance. He's added to those holdings to his portfolio. Was recently. This is Bloomberg Radio.