The Executive Director of the Financial Supervision Board (JCF), Natalie Yarsco, defended the debt adjustment plan on Friday, following conditions that Governor Pedro Perelozi Urrutia had set to support it.
“The expenditures incurred in Puerto Rico’s exit from bankruptcy are substantial but are inevitable to reduce its debt burden. Puerto Rico’s debt is extraordinarily large, unsustainable, and complex. The restructuring is taking place as part of an orderly, prudent and equitable bankruptcy process that has already resulted and will continue to generate significant savings for the people of Puerto Rico.
Puerto Rico’s bankruptcy of roughly $ 130 billion is the largest in the history of municipal bonds, and is exacerbated by economic decline, recession, massive immigration and natural disasters. The debt has been issued by more than a dozen public entities. More than 165,000 creditors provided evidence of the claim.
Legal expenses incurred are a fraction of the savings realized and will be realized in the future through a significant reduction in debt service payments. In fact, the expenditures incurred to date are less than 1 percent of the savings that the Puerto Rican People’s Supervisory Board has achieved through completed debt restructurings, ”Jarisco said in written statements.
On Friday, Yarsco participated in a meeting with the members of the board of directors and the governor.
“It was a fruitful meeting in which I set out the priorities of the government and the four core issues: my opposition to cuts in pensions, municipalities, the universal periodic review, and the necessary investment in public service,” Pierluese Urrutia said. written.
“We talked about the confidential mediation process and I reiterated that the only way I will support the debt settlement plan is for the payment to be managed from a financial point of view, that it is an amount of debt that we can pay and that we will not default.”
The governor announced during the meeting that he would submit the budget request on Tuesday, February 2.
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