One of the thorniest tasks awaiting a seven-member board charged by Washington, D.C., with cleaning up Puerto Rico’s debt crisis is deciding how to balance a $70 billion debt load with nearly $43 billion in unfunded pension liabilities, according to a Wall Street Journal analysis today.
Puerto Rico in Distress
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One of the toughest tasks that awaits the federal control board charged with overseeing Puerto Rico’s finances may be how to strengthen the island’s retirement system, the worst-funded pension program among U.S. states and territories, Bloomberg News reported yesterday.
Puerto Rico has another debt problem — beyond the $70 billion the island owes bondholders. Even as other parts of the U.S. have bounced back from the recession, the commonwealth is still recording “stubbornly high” mortgage delinquency rates and anemic rates of household borrowing, according to a blog post this month by the New York Fed, the Wall Street Journal reported yesterday.
U.S. Treasury officials didn’t tell Puerto Rico to default on general-obligation bond payments, according to a lawyer representing the island in its $70 billion debt restructuring, Bloomberg News reported yesterday. “At least in my experience, U.S.
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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.