Puerto Rico Infrastructure Financial Authority

The governor is asking for a stay until the court decides on the Plan of Adjustment.

Federal benefits for Child Tax Credits will also be expanded.

The governor and the Oversight Board had yet to offer an opinion on the increase.

The board bars implementing a 2020 law and is threatening legal action if the local government does not cooperate.

Funding would be offered, perhaps for pensions, in exchange for a debt restructuring.

The underestimate came as the board was concerned about the impact of COVID-19 on the island's economy.

Even if the Oversight Board can legally approve new debt for the deal, some market participants say the future "willingness to pay" is the larger consideration.

The board will say it has treated the creditors fairly, it meets the 'best interest' test for debtors, and its plan preempts dozens of local laws.

Bankruptcy Judge Swain conditionally approved the Disclosure Statement, moving the Plan of Adjustment closer to a vote, but questions remain on how new bonds for the deal will be resolved.

The Oversight Board reached the deal with Ambac Assurance and Financial Guaranty Insurance Company on PRIFA rum tax bonds. The two insurers had been important holdouts from the central government debt deal.

Puerto Rico's government would pay attorneys to represent the interests of bondholders who own less than $1 million of Puerto Rico bonds.

The Oversight Board filed a suit against a new law that contradicts certain provisions in the plan of adjustment. Gov. Pierluisi says the litigation is not necessary.

Board says all the objections to disclosure statements are without legal merit or should be addressed at the plan of adjustment confirmation.

The board said the measures passed by both the Puerto Rico House and Senate would harm the economy.

Puerto Rico's government tells the court the Disclosure Statement should address the likelihood the legislature will not approve new bonds for the plan of adjustment since the plan cuts pensions.

Also on Wednesday Judge Swain said she would not send out the central government bankruptcy's disclosure statement until she was satisfied with it.

Through the first nine months of the fiscal year, Sales and Use Tax collections are up 30% from the year earlier.

In the bill the governor signed, lawmakers will not approve a plan of adjustment with cuts to pensions, which the current proposed plan includes.

While its budget does not include debt service, the executive director said she anticipated amending it in the coming fiscal year once the plan of adjustment is finalized.

Long-term economic stability is not sustainable, economists say, after federal aid dries up.