31 January 2018

Puerto Rico Sees No Debt Payment Ability Until 2022

Governor Rossello issued revised fiscal turnaround plans, painting a bleak picture of an island struggling after its worst natural disaster in 90 years.

Puerto Rico’s governor has projected Thursday his bankrupt, hurricane-ravaged U.S. territory will run a budget deficit for the next four fiscal years, requiring new financing while leaving next to nothing to repay the island’s US$72 billion debt until 2022.

The announcement is supposed to justify Rossello’s decision to privatize the power utility, PREPA. Rossello's plan also predicted a minimum of US$35.3 billion in federal aid to help recover from Hurricane Maria that devastated Puerto Rico in September, as “external liquidity support” to maintain basic services.