Puerto Rico Board Unveils $35 Billion Bankruptcy-Exit Framework

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Puerto Rico Board Unveils $35 Billion Bankruptcy-Exit Framework
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The island’s financial supervisors strike a partial deal on central government debt restructuring

Puerto Rico’s financial supervisors struck a deal with creditors owed $3 billion that sets out a path for restructuring $35 billion in debt obligations tied to the central government and scaling back debt payments over the next 30 years by half.

The U.S. territory’s oversight board said the agreement marks an acknowledgment by bondholders “that Puerto Rico’s difficult financial situation requires a meaningful reduction in its debt burden to a sustainable level.”

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