Puerto Rico’s government called for deeper cuts in debt repayment in light of the coronavirus pandemic’s severe economic impact, saying a $35 billion restructuring proposal from financial-oversight officials “is simply not feasible,” WSJ Pro Bankruptcy reported. The U.S.
Puerto Rico in Distress
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A U.S. judge ruled yesterday that bankrupt Puerto Rico cannot fund more than $300 million in annual pension and health costs for its municipalities, but suspended the effective date of the order for three weeks due to the ongoing coronavirus health crisis, Reuters reported. Puerto Rico’s federally created financial oversight board sued the U.S.
Puerto Rico and a group of investors in February agreed to a debt-cutting deal that would allow them to recover as much as 77.6 cents on the dollar from their investment in the island’s bonds. But that deal may have to be revisited as the coronavirus darkens the outlook for the economy, Bloomberg News reported.
Puerto Rico Governor Wanda Vazquez said a $787 million coronavirus relief package will include cash payments to nurses and police and vulnerable parts of the island’s economy, Bloomberg News reported. The island’s 170,000 self-employed workers will get cash payments of $500 apiece starting this week, while small businesses that have had to shutter operations will get $1,500 each.
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