The Financial Oversight and Management Board for Puerto Rico approved the plan by a 6-1 vote Thursday after negotiations with the commonwealth’s government failed.
The Puerto Rico Oversight Board’s new fiscal turnaround plan for the commonwealth may more than double debt payments to bondholders compared with earlier proposals.
The latest turnaround plan projects a surplus of $6.7 billion over the next six years before debt payments, about $400 million more than Gov. Ricardo Rossello estimated earlier this month.
German Ramirez of HJ Sims talks from Puerto Rico about the situation on the island, and discusses PREPA, the Commonwealth’s fiscal plan, the future of public-private alliances and what it all means for bondholders. Chip Barnett hosts.
Eleven states and five cities will also receive a share of the CDBG disaster grants, with the biggest amount of $4.7 billion going to Texas for the damage caused by Hurricane Harvey.
The board may choose to approve its own version of the plan by April 20, setting up a legal and political fight for control of the Puerto Rico government.
The three islands of the USVI have received more than $1 billion in federal disaster assistance through March 27, according to FEMA spokesman Manuel Broussard.
