SAN JUAN: A federal board with oversight over Puerto Rico’s finances proposed a restructuring plan earlier this week that would reduce the US territory’s debt by approximately 65%, initiating what was called a “great step” towards ending the island’s bankruptcy. The territory has been in dire financial straits under an ongoing economic crisis, with matters only made worse when Puerto Rico was struck by deadly Hurricane Maria in 2017. The adjustment plan, which still must be approved by a US federal court, would reduce the government’s liability, including bonds and other obligations, from $35 billion to $12 billion. Puerto Rico declared bankruptcy in May 2017, unable to repay its creditors and crushed under $70 billion in debt. “Today we have taken a great step to leave bankruptcy behind and begin to visualize Puerto Rico’s future under conditions of fiscal stability and economic sustainability,” said Federal Control Board Chairman Jose Carrion.
Published in The Express Tribune, September 29th, 2019.