Fiscal Control Board (JCF) executive director Natalie Jaresko defended the debt adjustment plan on Friday, following the terms set by Governor Pedro Pierluisi Urrutia to back it up.
“The costs incurred in the process of getting Puerto Rico out of bankruptcy are significant but inevitable to reduce the debt burden. Puerto Rico’s debt is huge, unsustainable and extraordinarily complex. The restructuring is being carried out under an orderly, judicious and just bankruptcy that has already generated and will continue to generate significant savings for the people of Puerto Rico.
Puerto Rico’s approximately $ 130 billion bankruptcy is the largest in municipal bond history, exacerbated by economic downturn, recession, significant emigration and natural disasters. The debt has been issued by more than a dozen public entities. More than 165,000 creditors have filed a claim.
The legal costs incurred are a fraction of the savings that have been and will be achieved in the future through a substantial reduction in debt service. In fact, the expenses incurred so far are less than 1 percent of the savings that the Oversight Board has generated for the people of Puerto Rico from the completed debt restructuring, ”Jaresko said in written statements.
Jaresko attended a meeting on Friday with the members of the board and the governor.
“It was a productive meeting in which I redefined the government’s priorities and four core issues: my opposition to cuts in pensions, municipalities and the UPR, and the necessary investment in public service,” Pierluisi Urrutia said in statements. written.
“We talked about the mediation process being confidential and I reiterated that the only way I’m going to support a debt adjustment plan is that the payment is manageable from a tax standpoint, that it is an amount of debt that we can pay and that we do not default. will stay ”, he added.
During the meeting, the governor announced that he will submit the budget request on Tuesday, February 2.
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