Puerto Rico’s financial oversight officials are backing away from commitments made to bondholders as the economic damage from the coronavirus becomes clearer, WSJ Pro Bankruptcy reported. The board overseeing Puerto Rico’s finances has concluded it won’t have a sufficient surplus to cover bondholders’ settlement payments under its current debt-adjustment proposal.
Puerto Rico in Distress
The coronavirus pandemic could cut Puerto Rico’s tax revenue by as much as $2 billion in fiscal year 2020, the commonwealth’s federal oversight board said Wednesday, the latest setback for efforts to restructure the commonwealth’s debt, Bloomberg News reported.
Puerto Rico’s government called for deeper cuts in debt repayment in light of the coronavirus pandemic’s severe economic impact, saying a $35 billion restructuring proposal from financial-oversight officials “is simply not feasible,” WSJ Pro Bankruptcy reported. The U.S.
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.