KEYC - Pres. Trump Budget Chiefs Say No Bailout For Puerto Rico Debt

Pres. Trump Budget Chiefs Say No Bailout For Puerto Rico Debt

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The White House's budget director says Puerto Rico shouldn't expect a federal bailout of its debt even after President Donald Trump spoke of the need to ``wipe out'' that red ink as part of the island's recovery after Hurricane Maria.
     Mick Mulvaney tells reporters that the administration plans to send Congress a disaster aid package that'll include money for the U.S. territory.
     But Mulvaney says: ``We are not going to be offering a bailout for Puerto Rico or for its current bondholders.''
     Trump told Fox News on Tuesday that federal officials would have to look at Puerto Rico's debt structure and ``we're going to have to wipe that out.''
     Before the hurricane, Puerto Rico's government was negotiating with creditors to restructure a portion of its $73 billion in debt.