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The White House says it has chosen seven experts in finance and law to supervise Puerto Rico’s fiscal affairs in the coming months under a law enacted this summer intended to help the island restructure its $72 billion debt.
Four of the supervisory board members are Republicans and three are Democrats, chosen from lists provided by the party leaders of both houses of Congress. And four of the members are Puerto Ricans, which is three more than required under the new debt-restructuring law.
The Republicans named to the board are:
■ Andrew G. Biggs, a resident scholar at the American Enterprise Institute.
■ José B. Carrión III, president of Hub International, an insurance broker in Puerto Rico.
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■ Carlos M. García, founder and chief executive officer of BayBoston Managers, a private equity firm.
■ David A. Skeel Jr., a University of Pennsylvania law professor with expertise in bankruptcy.
The Democrats are:
■ Arthur J. Gonzalez, a senior fellow at New York University’s School of Law and a former chief judge of the United States Bankruptcy Court for the Southern District of New York.
■ José Ramon González, president and chief executive officer of the Federal Home Loan Bank of New York.
■ Ana J. Matosantos, president of Matosantos Consulting and a former director of the California Department of Finance.
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In addition, the governor of Puerto Rico, Alejandro García Padilla, will hold an ex officio position on the board. He is not seeking a second term as governor, so whoever is elected in November to succeed him will also take his seat on the board.
“These officials have the breadth and depth of knowledge that is needed to tackle this complex challenge,” President Obama said in a statement on Wednesday announcing the appointments.
The board was created as part of a new legal framework to shelter Puerto Rico from creditor lawsuits while it seeks to reduce its debt. The law, known as Promesa, was necessary because Puerto Rico is legally barred from restructuring in bankruptcy. Promesa gives the island some restructuring powers normally available only in bankruptcy, but also requires it to submit to federal oversight. The board is intended to remain in place until Puerto Rico regains access to the capital markets, which could take years.
Senior administration officials said the board’s first substantive task would be to review the fiscal plan that Governor García Padilla’s administration is preparing, assess its credibility and eventually certify it. The plan is to be the basis of Puerto Rico’s debt restructuring and other important economic activity on the island. It has been years since Puerto Rico has been able to balance its budget — one reason it became so indebted.
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