Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island's widely held U.S. municipal bonds, Reuters reported today. When U.S.
Puerto Rico in Distress
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Thom Tillis (R-N.C.) and Tom Cotton (R- Ark.) sent a letter on Friday to José B. Carrión III, chairman of the Financial Oversight and Management Board for Puerto Rico, expressing concern that Puerto Rico’s fiscal plan fails to comply with the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).
Puerto Rican power utility PREPA and its creditors have reached a new deal to restructure $8.9 billion in debt through new bonds with longer maturities, the U.S. territory's government announced yesterday, Reuters reported.
Moody's Investors Service yesterday lowered ratings on $13 billion of Puerto Rican bonds, including debt from the U.S. territory's now-defunct former fiscal agent, the Government Development Bank (GDB), Reuters reported.
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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.