The Governor Pedro Pierluisi Urrutia announced today, Tuesday, that the National Government and the Government Buildings Agency agree with the Tax control council (JCF) to one Support agreement for the Port Government Adjustment Plan Rico (“PSA”).
This agreement will be filed with the Title III Court on March 8, for approval later this year.
“The economic terms of the agreement announced by the Council and the Creditors Group are positive for Puerto Rico. In addition, I am convinced that the agreement is durable and can be enforced without jeopardizing essential government services,” said the governor. explanations.
For example, the agreement represents a reduction in Puerto Rico’s total debt by nearly 80% and a reduction in total debt service by approximately 62%. Compared to the adjustment plan proposed by the Board of Directors in February 2020, the amount of secured debt is significantly reduced and the entire central government debt is replaced by only unsecured bonds with general liabilities and contingent value instruments, ” he added.
According to Pierluisi Urrutia, this is an adjustment plan It should no longer affect the country’s retirees and therefore the local government will not sign the PSA announcing them today
“I am sure that the court chaired by Federal Judge Laura Taylor Swain can approve an adjustment plan that does not include a reduction in pensions, as this is not necessary for the transaction to be successful, and I will explain this to the honorable court “express.
Over the past several months, the government, through the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), has participated in the mediation process that enabled the PSA announced today by the board. During this process, the government emphasized that a PSA to be implemented through an adjustment plan that includes a cut in civil servants’ pensions will not have our support. Unfortunately, the board has not yet abandoned the pension cuts included in the February 2020 adjustment plan. That is why the Puerto Rico government has informed the board and the group of creditors that it will not be part of the announced PSA today, ”he concluded. .