While history is littered with examples of ill-designed debt restructuring exercises that soon unraveled at great economic and human cost, the recently announced debt restructuring arrangement for Puerto Rico's sales tax-backed bonds (COFINA), the island's economy risks joining those ranks, according to a Bloomberg commentary.
Puerto Rico in Distress
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Puerto Rico’s unsecured creditors will drop their opposition to a deal to restructure roughly $4 billion of debt issued by the U.S. commonwealth’s defunct Government Development Bank (GDB), under an agreement revealed on Friday, Reuters reported. During a U.S.
Puerto Rico bond guarantors are seeking to replace the leaders of the island’s electric-power monopoly with a receiver and shift control over the bankrupt public corporation ahead of a planned privatization, WSJ Pro Bankruptcy reported. Assured Guaranty Corp., MBIA Inc. and Syncora Guarantee Inc.
According to a new study commissioned by the Youth Development Institute of Puerto Rico and presented in Congress last week, 30 percent of Puerto Rican families with children lost their jobs or had their work hours reduced after the hurricane, according to an opinion piece published by The Hill.
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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.