Treasury secretary to show 'commitment' to Detroit in visit

A vacant, boarded up house is seen in the once thriving Brush Park neighborhood with the downtown Detroit skyline behind it in Detroit,Treasury Secretary Jack Lew will visit bankrupt Detroit this week to highlight the Obama administration’s “continued commitment to the city’s revitalization and explore ways to promote job creation and economic growth,” according to an advisory his department released on Monday. In a draft of its plan for restructuring $18 billion in debt and other obligations released last week, Detroit outlined how it will tap philanthropies for $816 million to cover pension costs and avoid selling pieces from the Detroit Institute of Arts. President Barack Obama has not pledged direct funds to the Motor City, but his administration and Congress are using existing federal programs to provide aid. “As we’ve said, there is no bailout coming from Washington, but we continue to support the efforts by state and local officials as they work on Detroit’s revitalization.” The assistance comes as Detroit zeroes in on formulating a final restructuring plan that can win approval from Bankruptcy Judge Steven Rhodes.

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