The executive director of the Fiscal Control Board (JCF), Natalie Jaresko, defended the debt adjustment plan on Friday, following the conditions set by Governor Pedro Pierluisi Urrutia Urrutia to support it.
“The costs incurred in the process for Puerto Rico to emerge from bankruptcy are substantial but inevitable to reduce its debt burden. Puerto Rico’s debt is large, unsustainable and extraordinarily complex. Restructuring is underway. of orderly, sensible, and equitable bankruptcy that already generated and will continue to generate significant savings for the people of Puerto Rico.
Puerto Rico’s bankruptcy of approximately $ 130 billion is the largest in the history of municipal bonds, exacerbated by economic decline, recession, significant emigration, and natural disasters. The debt was issued by more than a dozen public entities. More than 165,000 creditors have filed evidence of claim.
The legal expenses incurred are a fraction of the savings that have been and will be achieved in the future through a substantial reduction in debt service payments. In fact, the expenses incurred so far are less than 1 percent of the savings that the Board of Supervisors generated for the people of Puerto Rico through the completed debt restructurings, ”Jaresko said in written statements.
Jaresko participated in a meeting with members of the Board and the governor on Friday.
“It was a productive meeting in which I re-established the priorities of government and the four core issues that are: my opposition to cuts in pensions, municipalities and the UPR, and the necessary investment in public service” , said Pierluisi Urrutia in written statements.
“We talked about the mediation process which is confidential and I reiterated that the only way I will support a debt adjustment plan is for the payment to be tax-manageable, to be an amount of debt that we can pay and that we are not going to default on, ”he added.
At the meeting, the governor announced that he would submit the budget request on Tuesday, February 2nd.
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