Commonwealth of Puerto Rico

Puerto Rico’s debt cannot be canceled by order of the president, restructuring experts and a key congressman said.

Puerto Rico bonds plunged on Wednesday after President Donald Trump suggested the commonwealth’s debt needed to be “wiped out” to help the island recover from the devastation caused by Hurricane Maria.

Puerto Rico bonds took a big hit on Wednesday after President Donald Trump suggested the commonwealth’s debt needed to be “wiped out” to help the island recover from the devastation caused by Hurricane Maria.

Puerto Rico’s general obligation bonds maturing in 2035 have lost a fifth of their value in secondary trading on concern over the economic impact of the storm.

The board says it will postpone any discussion of furloughs until the next fiscal year.

Two key Puerto Rico Oversight Board members met with members of Congress Thursday and Friday.

Puerto Rico's power authority said it may take more than six months to restore electricity and there was a report that the Oversight Board was ready to revise the amount of debt to be paid in the next nine years.

Hurricane Maria’s devastation of Puerto Rico is a credit negative for Assured Guaranty and National Public Finance Guarantee Corp., Moody’s Investors Service said.

The board approved the reallocation of $1 billion for emergency funding to recover from Hurricane Maria.

Puerto Rico Oversight Board executive director Natalie Jaresko told The Bond Buyer the commonwealth might also pay some of its debt later this year.