The executive director of the Fiscal Control Council (JCF), Natalie Jaresko, defended on Friday the debt adjustment plan, according to the conditions established by the governor Pedro Pierluisi Urrutia to support it.
“Puerto Rico’s bankruptcy spending is substantial, but inevitable, to reduce its debt burden. Puerto Rico’s debt is large, unsustainable and extraordinarily complex. The restructuring is taking place in an orderly, judicious and fair bankruptcy process that has already generated and will continue to generate significant savings for the people of Puerto Rico.
Puerto Rico’s bankruptcy of about $ 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 presented evidence of the claim.
The legal costs incurred represent a fraction of the savings that have been and will be realized in the future through a substantial reduction in debt service payments. In fact, the expenditures made so far represent less than 1 percent of the savings that the Supervisory Board has generated for the people of Puerto Rico through the completed debt restructurings, ”Jaresko said in written statements.
Jaresko attended a meeting with council members and the governor on Friday.
“It was a productive meeting in which I re-established the government’s priorities and the four key issues which are: my opposition to pension cuts, municipalities and UPR and the necessary investment in the public service,” Pierluisi Urrutia said in a statement. written.
“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 one that is managed from a fiscal point of view, that it is an amount of debt that we can pay it and we will not respect it “, he added.
At the meeting, the governor announced that he will submit the budget request on Tuesday, February 2.
We recommend: