Puerto Rico to Make Debt Restructuring Proposal in a Few Weeks
- Commonwealth faces a $500 million cash shortfall in June 2016
- Moratorium on principal payments is being pursued by island
Puerto Rico Sees a $13B Debt Gap in Next Five Years
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Puerto Rico plans to present a debt-restructuring offer in a few weeks to address a projected $13 billion shortfall in bond payments due over the next five years that the commonwealth says it can no longer afford to pay.
“We’ll be ready with a first proposal as to how to make the $18 billion worth of contractual debt service fit to the available resources we have under this plan,” Jim Millstein, the island’s chief restructuring adviser, said in San Juan, after Alejandro Garcia Padilla’s administration released what they’re calling a fiscal and economic growth plan. Puerto Rico said it only has $5 billion available for the payments.