the governor Pedro Pierluisi Urrutia Urrutia announced today, Tuesday, that the central government and the Public Buildings Authority agreed with the Prosecutor’s Control Board (JCF) to sign a Agreement to Support the Port Government Adjustment Plan Rico (“PSA”, for its acronym in English).
This agreement will be presented to the Title III Court on March 8, to be approved later this year.
“The economic terms of the agreement announced by the JSF and the Creditors Group are positive for Puerto Rico. Moreover, I am convinced that the agreement is sustainable and can be complied with without jeopardizing essential government services.” has expressed the governor through written statements.
“The agreement, for example, represents a reduction in Puerto Rico’s total debt of almost 80% and reduces total debt service by approximately 62%. Compared to the Adjustment Plan proposed by the JSF in February 2020 , greatly reduces the amount of secured debt and replaces all central government debt with unsecured general obligation bonds and contingent value instruments exclusively, ”he added.
According to Pierluisi Urrutia, this Adjustment Plan should no longer affect pensioners in the country and therefore the local government will not be subscribing to the PSA announced today.
“I am confident that the Court presided over by Federal Judge Laura Taylor Swain may approve an Adjustment Plan that does not contain a cut in pensions because it is not necessary for the success of the transaction, and so I will state in the honorable court, “he said.
“Over the past few months, the Government, through the Puerto Rico Financial Advisory Authority and Tax Agency (“ AAFAF ”), has been involved in the mediation process that allowed the PSA announced today by the JSF. During this process, the Government was emphatic that any PSA to be implemented through an Adjustment Plan that includes a cut in public servants ’pensions will not have our support.Unfortunately, the JSF has not yet abandoned the cuts in pensions included in the February 2020 Adjustment Plan. Therefore, the Government of Puerto Rico has informed the JSF and the Creditors Group that it will not be part of the PSA announced today, ”he concluded.