Settlement Poised for Judge's Confirmation
Washington DC – Puerto Rico’s Senate and House passed a deal that settles $35 billion in Puerto Rico debt and will save the island two-thirds in debt payments.
"Puerto Rico voted to end the bankruptcy process that the island has gone through for four years," stated Eric LeCompte, the Executive Director of Jubilee USA Network. LeCompte worked with Puerto Rico religious leaders on solving the island's debt crisis since 2015. "With natural disasters, high child poverty rates and uncertain economic forecasts, we are concerned that Puerto Rico will be able to make the debt payments."
Bondholders receive $7 billion in cash and other benefits.
"We are worried that Puerto Rico may need to restructure its debt in a few years," shared LeCompte.
Judge Laura Taylor Swain, overseeing Puerto Rico’s 4-year bankruptcy process, ordered a mediation to settle remaining differences between the legislation and Puerto Rico's federally installed Financial Oversight and Management Board. Differences remain over pension issues in the debt deal.
The judge could confirm the agreement on November 8th.