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The Oversight Board, together with the Government of Puerto Rico, so far restructured about 80% of Puerto Rico's outstanding debt, lowering total liabilities from more than $70 billion to a sustainable $37 billion, which will save Puerto Rico more than $50 billion in debt service payments.
On January 18, 2022, Judge Laura Taylor Swain of the U.S. District Court for the District of Puerto Rico confirmed the Plan of Adjustment for the Commonwealth of Puerto Rico to restructure $33 billion of liabilities against the Commonwealth of Puerto Rico, the Public Building Authority (PBA), and the Employee ...
It has also struggled under a large public debt in recent years, totaling about $70 billion?or 68 percent of gross domestic product (GDP)?in 2020. Puerto Rico's downward spiral has been compounded by natural disasters, government mismanagement and corruption, and the COVID-19 pandemic.
Puerto Rico is a territory of the United States. Territory status limits the island's full political, economic, and social development.
?The FOMB's Plan of Adjustment is premised on extracting further rents from commercial and residential energy consumers ?that is, ordinary citizens? to satisfy the unsecured claims of PREPA's bondholder-creditors.
The proposed Plan of Adjustment filed by the Oversight Board under PROMESA's Title III provides a framework to reduce the Commonwealth of Puerto Rico's debt to sustainable levels and is a milestone on Puerto Rico's path to exit bankruptcy.
Commonwealth of Puerto Rico: Puerto Rico's gross domestic product (GDP) was $106.5 billion as of June 30, 2021. In March 2022, Puerto Rico finalized its largest debt restructuring: issuing $7.4 billion in new bonds replacing $34.3 billion in outstanding bonds (a 78 percent reduction).
Real gross domestic product (GDP) for Puerto Rico increased 4.0 percent in 2021 after decreasing 6.2 percent in 2020 (table 1.3), ing to statistics released today by the U.S. Bureau of Economic Analysis (BEA).