Puerto Rico in Distress

ABI Analysis

Puerto Rico’s pro-statehood candidate Pedro Pierluisi yesterday was holding on to his narrow lead in the gubernatorial race as ballot counting continued and his chief rival refused to concede, Bloomberg News reported.

A plan to pull Puerto Rico out of bankruptcy by 2021 hit a major obstacle on Friday when a new member that U.S. President Donald Trump appointed to a federal control board overseeing the island’s finances rejected the immediate filing of a debt restructuring proposal.

The judge overseeing Puerto Rico’s debt restructuring process has rejected a bond insurer’s request for an investigation into what it said were potentially improper bond trades based on information obtained during confidential mediation sessions, Reuters reported. During a telephonic hearing on Wednesday, U.S.

Seven members of the U.S. House of Representatives have sent a letter to the Puerto Rico Oversight Board asking it to postpone debt negotiations until an investigation of insider trading can be completed, Bond Buyer reported. U.S. Rep.

Other Resources

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.