Puerto Rico's new governor wants to replace a law that allows the U.S. territory redirect revenues earmarked for bondholders to pay for essential services, the latest move to court holders of $70 billion in debt ahead of high-stakes restructuring talks, Reuters reported yesterday.
Puerto Rico in Distress
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Some of Puerto Rico’s creditors are offering financing to the indebted U.S. territory as they jockey for top status in the renegotiation of its debts, the Wall Street Journal reported today.
Puerto Rico Governor Ricardo Rossello on Friday criticized a set of recommendations by the federal board in charge of managing the U.S. territory's finances, signaling a potential power struggle between the government and the board on how to pull the island out of economic crisis, Reuters reported.
Puerto Rico's federal oversight board said on Wednesday that it was willing to extend key deadlines that would give the debt-laden U.S. territory's government more time to negotiate restructuring deals with holders of its roughly $70 billion in bonds, 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.