Puerto Rico in Distress

ABI Analysis

A federal control board that supervises Puerto Rico’s finances announced a new executive director on Thursday after its last one stepped down in April following a historic debt restructuring for the U.S. territory, the Associated Press reported. Robert Mujica, budget director for New York state, is expected to assume his new role in January.

Canceling the landmark contract that put Puerto Rico’s electric grid under private management is “not on the table,” despite calls to revoke the deal by Nov. 30, Fermin Fontanes, the head of the island’s public-private partnerships agency, told WKAQ 580 radio Thursday, Bloomberg News reported.

Puerto Rico’s financial oversight board says it’s still at odds with creditors of the island’s bankrupt power company over how much businesses and residents can afford to pay for electricity, Bloomberg News reported. An “impasse” over energy tariffs is responsible for a recent collapse in negotiations to restructure Puerto Rico Electric Power Authority’s $9 billion in debt, said Prof.

A federal judge on Wednesday approved a plan to restructure some $6 billion of debt held by Puerto Rico’s Highways and Transportation Authority as the U.S. territory emerges from bankruptcy, the Associated Press reported. The plan cuts the agency's debt by more than 80% and saves Puerto Rico more than $3 billion in debt service payments, according to Gov.