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Puerto Rico Bonds Decline After Recovery Plan Leaves Less for Paying Debts

  • Prices of most-active securities fall after board backs plan
  • Final proposal suggests need for bigger bondholder concessions
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Puerto Rico Governor Hopeful About Turnaround Plan

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Puerto Rico general-obligation bonds fell after the federal oversight board approved a financial recovery plan that will cover less than a quarter of the debt payments coming due, underscoring the deep concessions the island plans to seek from investors.

The price of securities due in 2035, among the most actively traded, dropped 5 percent to an average of 67.5 cents on the dollar Tuesday to the lowest in two months, according to data compiled by Bloomberg. Those maturing in 2039 slipped to 60.2 cents from 63.8 cents Monday.