Puerto Rico, with more than $70 billion of bonds at stake, has become the latest testing ground of austerity as the right prescription for an economy in decline, according to a commentary in The Bond Buyer.
Puerto Rico in Distress
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Puerto Rico Governor Wanda Vazquez, who had said that she was reluctant to take power after her predecessor resigned in disgrace this past summer, yesterday declared her candidacy for the same office in next year’s elections, Reuters reported. Vazquez was sworn in as governor in August when widespread protests led to the resignation of Gov.
A month after Puerto Rico filed its historic bankruptcy case in 2017, a complaint was filed by a group of hedge funds that had purchased Puerto Rican bonds around 2015 and were concerned that the bankruptcy would prevent them from recouping the bonds’ full value, according to a New York Times analysis.
Puerto Rico’s roads, ports, energy grid and other infrastructure scored an overall D-minus in the first report card issued for the U.S. commonwealth yesterday by an engineering group, which put a price tag of as much as $23 billion over 10 years on needed updates and repairs, 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.