SAN JUAN, Puerto Rico (AP) — The Federal Board of Trustees, which oversees Puerto Rico’s finances, named a new executive director Thursday after the last executive director resigned in April following a historic debt restructuring for the U.S. territory. Announced.
New York State Budget Director Robert Mujica will assume his new position in January. He previously served as Chief of Staff to the New York State Senate Majority Leader and was secretary to the state’s Senate Finance Committee.
“It’s an exciting and fun job,” he said in a phone interview. “I wasn’t about to leave.”
However, the board contacted Mujica, who wants to return to the island where he spent his summers as a child, whose parents and grandparents hail from the north coast town of Arecibo.
“This is a big challenge,” he said of his new job. “For me, it’s exciting to be part of the solution.”
In 2016, a year after the U.S. Congress announced that Puerto Rico would be unable to pay more than $70 billion in public debt accumulated through decades of mismanagement, corruption, and excessive borrowing. established a board of directors.
In 2017, Puerto Rico filed for the largest municipal bankruptcy in U.S. history. Nearly five years later, in January, a federal judge approved a plan to reduce the territorial debt and allow the government to start paying back its creditors. Many of the debts have been restructured, but his $9 billion held by Puerto Rico’s power company — the agency’s largest debt — has yet to be settled after mediation talks failed, and the lawsuit has since reopened. rice field.
Mujica, who will replace Natalie Jaresco, will serve on the board that oversees processes like bankruptcy, and will remain in that position until the Puerto Rico government approves four consecutive balanced budgets.
Board chairman David Skeel said last year’s budget could be considered balanced, but the board cannot confirm that until it receives an audited financial report. Meanwhile, auditors are still reviewing Puerto Rico’s 2019 budget.
Mujica declined to comment on whether he agreed with all of the board’s moves in recent years or commented on the actions of the governor of Puerto Rico. I said we need to understand.
Overall, Mujica said his goals are to support fiscal responsibility, promote long-term stability and ensure revenues are aligned with spending needs. He said that while economic development is important, it cannot be achieved if the island’s budget or economy is unstable.
“It’s a lot easier to govern year by year, but then you’re not ready for the long term,” he said. “The common goal is to serve the people of the island. There may sometimes be differences on how to achieve it, and my role is to bridge that and reach agreement as often as possible.”
Mujica, as a growing number of Puerto Ricans condemn the austerity measures implemented by Mujica amid calls for an economic development plan for the island, which still faces financial difficulties and struggles to recover from recent hurricanes. joins the board of directors.
Commentators also point out that the ongoing bankruptcy proceedings cost Puerto Rico about $1 billion in consultants, lawyers and other costs, while board members earn $625,000 a year.
The board unanimously selected Mujica after the search firm interviewed dozens of candidates, Skir said.
“I can’t tell you how excited I am to have Robert on board,” he said. “He has the perfect background for what we do.”
