governor Pedro Pierluisi Urrutia announced today, Tuesday, that the central government and the Authority for Public Buildings have agreed Fiscal control council (JCF) to sign a Support agreement for the port government adjustment plan Rico (“PSA”).
This agreement will be submitted to the Title III Court on March 8, for later approval this year.
“The economic conditions of the agreement announced by the board and the group of creditors are positive for Puerto Rico. In addition, I am convinced that the agreement is sustainable and can be fulfilled without jeopardizing essential government services,” the governor said. statements.
“The agreement, for example, represents a reduction in Puerto Rico’s total debt by almost 80% and reduces total debt service by about 62%. Compared to the adjustment plan proposed by the board in February 2020, the amount of secured debt is considerably reduced, and the entire debt of the central government is replaced exclusively by non-performing bonds with general bonds and contingent value instruments, ”he added.
According to Pierluisi Urrutia, this adjustment plan It should no longer affect pensioners in the country and therefore the local government will not sign the PSA it announces today.
“I am confident that the Court presided over by Federal Judge Laura Taylor Swain can approve an adjustment plan that does not contain a reduction in pensions, as it is not necessary for the success of the transaction and I will declare this to the honorable court,” he said.
In recent months, the Government, through the Puerto Rico Tax Agency and the Financial Advisory Authority (“AAFAF”), has participated in the mediation process that allowed PSA to be announced today by the Board. During this process, the Government stressed that any PSA to be implemented through an adjustment plan that includes a reduction in civil servants’ pensions will not have our support. Unfortunately, the Council has not yet abandoned the pension reductions included in the February 2020 Adjustment Plan. Therefore, the Government of Puerto Rico has informed the Council and the Group of Creditors that it will not be part of the announced PSA today, ”he concluded. .