Authorized statement from Governor of Puerto Rico Ricardo Rosselló:
(February 4, 2019 – San Juan) “Puerto Rico has taken an important step towards its total financial recovery. The confirmation in the Federal Court of the first adjustment plan, as provided in Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), allows the restructuring of 25 percent of the totality of the public debt issued by past governments.
The ratification of this agreement constitutes the first time that a government administration manages to reduce the public debt of Puerto Rico.
The result of the negotiation and approval by the Federal Court proves the credibility won by our Administration before important financial entities and the federal Government.
Through the agreement, the People of Puerto Rico will achieve savings that exceed $17 billion in debt service and approximately 33 percent in principal. This represents more than $400 million annually that will be available for services in critical areas such as health, education, pension payments, and public safety, in compliance with other obligations.
Today, the Government of Puerto Rico, instead of increasing the debt as it happened in past administrations, manages to reduce it.
I appreciate the effort carried out by our fiscal team, under the command of Christian Sobrino, who responsibly and successfully achieved an important agreement for Puerto Rico.
We continue with the plans to restructure the rest of the debt, under just conditions that facilitate the provision of government services to the People and a stable economic growth in Puerto Rico.”
