Puerto Rico is poised to restructure the Government Development Bank’s debt by exchanging its bonds for $2.6 billion of new securities, the first such debt swap for the U.S. territory since it collapsed into bankruptcy in May 2017, Bloomberg reported. The transaction will restructure about $4 billion of Government Development Bank debt.
Puerto Rico in Distress
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When Congress set out to legislate a solution that would help address Puerto Rico’s debt crisis almost three years ago, one of its main bipartisan objectives was to avert catastrophe.
Puerto Rico violated a law meant to safeguard the pensions of its public-sector workers who have been unable to invest the more than $300 million they contributed to a new retirement plan, according to a lawsuit filed yesterday against the U.S. commonwealth’s government and others by two labor unions, Reuters reported. The litigation, filed in U.S.
Puerto Rican legislators gave approval Thursday to a final agreement for restructuring bonds from the Sales Tax Financing Corp., known as COFINA, Pensions & Investments reported. The COFINA restructuring agreement was filed Oct. 19 in the court overseeing Puerto Rico's bankruptcy, under Title III of the Puerto Rico Oversight, Management and Economic Stability Act.
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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.