Puerto Rico Gov. Ricardo Rosselló has just the solution for the decade-long recession and crippling debt crisis his island is facing: U.S. statehood, Politico reported on Friday. Trouble is, Rosselló has little support from Congress for his dream of making the territory the 51st state — and possibly even less from the Trump administration.
Puerto Rico in Distress
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Puerto Rico says it owns $400 million in cash being held by a bondholder trustee, raising an issue at the heart of the territory’s $74 billion bankruptcy, Bloomberg News reported yesterday.
A relatively paltry $16 million has ignited a skirmish among bondholders over who will get paid first and who does not in Puerto Rico’s $74 billion bankruptcy, Bloomberg News reported yesterday. The dispute revolves around interest that’s due June 1 to holders of sales-tax bonds known as Cofinas. Mathematically, the $16 million is barely a rounding error.
Puerto Rico is seeking help from federal court to restructure the debt of the U.S. territory’s public pension system, which is projected to run out of money this year, the Associated Press reported today. A federal control board overseeing the island’s finances said that the move was taken in part to shield the government from a flurry of lawsuits.
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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.