Editor’s Note: The following is Alex Pollock’s testimony to the Senate Judiciary Committee on the subject of Puerto Rico’s fiscal problems, delivered December 1, 2015.
Mr. Chairman, Ranking Member Leahy, and Members of the Committee, thank you for the opportunity to be here today. I am Alex Pollock, a resident fellow at the American Enterprise Institute, and these are my personal views. Immediately before joining AEI, I was President and CEO of the Federal Home Loan Bank of Chicago from 1991 to 2004. I have published numerous articles on financial systems and credit crises, including municipal debt crises.
The government of Puerto Rico, having run a long series of constant budget deficits, has accumulated a very large debt which according to its own statements, it cannot pay.