Puerto Rico

The Oversight Board has reached an agreement with the Committee of Retirees that makes a flat 8.5% cut to pensions over $1,200 a month and does not change payments to the 61% of current retirees who receive monthly pensions of $1,200 or less.

The U.S. Senate has until July 14 to act.

The overall recovery would be in the 36% to 38% range under its restructuring plan for $35 billion in bonds.

The PRIDCO deal would be the fifth restructuring proposed or consummated under the Puerto Rico Oversight, Management, and Economic Stability Act of 2016.

The agreement “would increase prices by up to 21%” and it’s “highly unlikely PREPA will be able to completely offset the legacy debt charges,” resulting in “considerably higher electricity rates for decades to come,” said the letter signed by four senators and 32 House members.

The Oversight Board called the deal to reduce cuts to retirees a "crucial step" toward restructuring $25 billion in bonds and loans.

The new bonds would offer about 25 basis points less in interest.

He said the board has been inaccurate in its financial predictions and that he wouldn’t participate in any cuts to pensioner benefits.

The central government has $2.2 billion more than projected, raising hopes that bondholder losses may be mitigated.

The commonwealth overall has been allocated $42.3 billion in disaster aid since Hurricanes Maria and Irma struck the island, not counting the new funding approved by Congress.

The disaster-aid measure was delayed for about six months amid Trump’s objections to additional aid for Puerto Rico.

The board referred 13 public entities to the Puerto Rico Secretary of Justice and U.S. Department of Justice.

A surplus this coming fiscal year will be used in following years for debt and pension payments, Executive Director Natalie Jaresko said.

Over the first 10 months of the fiscal year, General Fund net revenues are 11% above October projections.

Court filings cast doubt on repayment of an additional $5.1 billion in the territory's debt restructuring.

U.S. Justice Department responds to hedge funds seeking reimbursement for Oversight Board impairments to bonds.

Justifying the latest bid to recover funds related to illegally issued debt, the board says the legislature failed to authorize the pension system bonds.

An IRS opinion that the existing bonds are tax-exempt is key to the exchange offer.

The delay of $220 million of pension savings is the latest "upsetting piece of news for bondholders."

The board and the governor remain about $500 million apart on spending.