(MENAFN- The Journal Of Turkish Weekly) >The U.S. Senate passed a debt-relief bill for Puerto Rico Wednesday, and it awaits President Obama''s signature before Friday, when the territory is set to default on its next debt payment.
President Obama has already said he looked forward to signing the legislation into law, which passed the Senate on a vote of 68-30. Puerto Rico''s government has some $70 billion in debt, $2 billion of which is due Friday. The territory has already defaulted on some of its debt, and has said it is unable to pay the $2 billion this week. The bill neither prevents nor authorizes a default on these payments, but it would halt any litigation brought against Puerto Rico by its creditors. The bill also proposes an oversight board of seven members appointed by President Obama to be in place by September 1st. Many Puerto Ricans are wary of this clause, fearful that the U.S. may put investors'' concerns ahead of local priorities. Neither political party was entirely happy with the bill - Democrats opposed a Republican provision that may lower the minimum wage for some young workers, while Republicans feared that the bill could amount to a bailout, or set a precedent for other states with financial problems to seek a similar arrangement. The passing of the bill has been seen, however, as a bright spot of bipartisan work in a time when Congress faces gridlock over many issues such as Zika funding and gun control. Puerto Rico is grappling with a 45% poverty rate and an outbreak of Zika that has damaged its tourism industry. It has waited for months for action from Congress as its economic situation worsened. The Supreme Court ruled earlier in June that Puerto Rico could not enact its own legislation to restructure its debt, leaving the island territory at the mercy of Congress.