A U.S. federal judge yesterday dismissed a lawsuit by some of Puerto Rico’s bondholders, who had argued that the U.S. territory broke the law by defaulting on constitutionally-guaranteed debt despite having the money to make payments, Reuters reported.
Puerto Rico in Distress
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Puerto Rico’s government unveiled a fiscal plan yesterday under which the commonwealth would only be able to support $2.5 billion to $14 billion of debt in the long term, a fraction of its current level, the Washington Post reported. The plan suggests that holders of its bonds might receive as little as a nickel on the dollar.
Puerto Rico’s governor projected his bankrupt, hurricane-ravaged U.S. territory will carry budget gaps for the next four fiscal years, leaving nothing to pay back the island’s $72 billion in bond debt until fiscal year 2022, according to Reuters. Governor Ricardo Rosselló made the projections in a revised fiscal turnaround plan released yesterday.
Puerto Rico Gov. Ricardo Rosselló said yesterday that he would put the island’s power utility up for sale, a watershed step toward dismantling a deeply indebted public monopoly that came under intense criticism for its response to Hurricane Maria, the Wall Street Journal reported. Gov.
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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.