As the debt started piling up and Puerto Rican leaders started getting desperate, commonwealth officials started making bigger and bigger promises to prospective bondholders, according to a Washington Examiner commentary today.
Puerto Rico in Distress
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Creditors of Puerto Rico's struggling power authority, PREPA, have presented the island's government with a counter-offer to restructure the utility's $8.9 billion in debt, Reuters reported yesterday. The U.S. territory's government was planning to review the plan ahead of a Friday deadline to finalize a restructuring deal at the utility.
Groups of Puerto Rico's creditors issued a rare joint letter late on Monday opposing a plan designed to steer the island out of financial crisis, stoking friction between the U.S. territory, its investors and the board tasked with managing its finances, Reuters reported yesterday.
Puerto Rico’s U.S. overseers threw support behind Governor Ricardo Rossello’s push for deeper concessions in the electric utility’s debt-cutting agreement, setting up a clash with creditors who said it jeopardizes the broader effort to restructure the territory’s $70 billion debt, Bloomberg News reported yesterday.
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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.