Rosselló Uses the 'Clawback' to Pay Interest on Debt
'We announce that we will pay interest on the debt that was not paid in February and we will do it this week.'
This is how Governor Ricardo Rosselló Nevares announced today his first use of the Financial Emergency and Fiscal Responsibility Act, commonly referred to as the Moratorium Law.
The law outlines the government's responsibility to creditors. The Governor reaffirmed his commitment not to affect government essential services when repaying debt.
Along this line, the Executive said that his administration identified a trust fund that had '$148 million' retained as clawback, which will be transferred to pay the interest on the debt that's due this month.
'Some have commented that this law is equal to the Moratorium Law (approved by his predecessor, Alejandro García Padilla) and I would like to explain why it is different ... we, as long as we can identify resources, are going to meet the payments,' said Rosselló Nevares while at the same time alleging that the $148 million would not affect essential services.
The Governor was not available to meet the press.