Puerto Rico

The fiscal Oversight Board estimates $62 billion of disaster relief funding from federal and private sources will boost the island’s economy for the next few years.

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.

Matosantos' ownership of renewable energy businesses on the island is said to conflict with responsibility overseeing PREPA.

General obligation holders said that the sales taxes supporting COFINA are resources that the territory's constitution promises to them.

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.

People involved in the $3.5 billion sale received notices that there would be no enforcement action.

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 vote came as Gov. Rossello said his fiscal plan will not accede to board demands.

Rosselló says that Rep. Rob Bishop is placing the needs of the bondholders over those of Puerto Rico residents.

Other Puerto Rico officials joined Gov. Ricardo Rosselló in resisting the board's demands for austerity

Natural Resources Committee Chairman Rob Bishop complained that "intentional misinterpretations" of the "PROMESA" law may mean U.S. promises to Puerto Rico will take "decades" to fulfill.

Rosselló said PROMESA allows the Oversight Board to make public policy recommendations, but not to order labor law reforms and pension cuts.

Oversight Board is continuing its struggle with the Puerto Rico government over fiscal plans.

A deal in August would have allowed debt holders to get up to 75% of par value.

The latest proposed fiscal plan may allow up to 29.4% of debt to be paid through fiscal year 2023.

The credit unions say that Puerto Rico used fraud and pressure to get them to buy the government bonds.

Officials said forgiveness of the Community Disaaster Loan could be considered at a later point.