July 10 Puerto Rico's willingness and ability to honor its debts "should be unquestioned" in light of actions the U.S. commonwealth's government has taken in the last 18 months to address its ailing financial and economic condition, the heads of the island's Treasury and Government Development Bank said on Thursday.
The two officials also said they stand behind the recent passage of Puerto Rico's "Recovery Act," a law enacted last month that paves the way for the island's power, water and highway authorities to restructure their debts through a bankruptcy-like process. The law has been challenged by Puerto Rico bondholders in court.
In a joint statement, Treasurer Melba Acosta Febo and GDB Chairman David Chafey said they would defend the law as reasonable and necessary. (Reporting by Dan Burns; Editing by James Dalgleish)