Puerto Rico debt-restructuring plan filed amid criticism
Source: The Associated Press
By DÁNICA COTO
today
SAN JUAN, Puerto Rico (AP) — A framework that outlines how Puerto Rico will restructure at least $35 billion in public debt and more than $50 billion in public pension liabilities threatens a 10% cut to public pensions if no agreement is reached with retirees.
The amended plan of adjustment of 233 pages was filed late Monday in U.S. court by a federal control board that oversees Puerto Rico’s finances and was created by Congress to lift the U.S. territory’s government out of bankruptcy.
The plan includes a proposed cut of up to 8.5% to monthly pensions of at least $1,500. That has long been a point of contention between the board and the governor, who has repeatedly said he would not approve such cuts.
Board Chairman David Skeel called the plan “a milestone for Puerto Rico’s recovery, stability, and prosperity. This plan substantially reduces the burden of debt payments on future generations, stabilizes and protects pensions that have been mismanaged for so long, and affirms the collective bargaining agreements of government workers.”
Read more: https://apnews.com/article/financial-markets-puerto-rico-latin-america-b69cb49d9db1fd25dae5c838d25c9b42
