Caribbean News Now!

About Us Contact Us


Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.


Submit news and opinion for publication


Click here to receive our daily regional news headlines by email.


Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin

News from the Caribbean:

Back To Today's News

Creditors outline violations of PROMESA in Puerto Rico fiscal plan
Published on March 29, 2017 Email To Friend    Print Version

WASHINGTON, USA -- On Monday, creditors and insurers representing approximately $12 billion of bonds issued by Puerto Rico and its instrumentalities sent a joint letter to members of the Federal Oversight Board created by the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) outlining violations of the law in the fiscal plan for Puerto Rico that was certified by the board on March 13, 2017.

The signers of the letter represent thousands of investors in municipal debt across the United States, many of whom are the very same investors that will be called upon to lend money to Puerto Rico in the future. The letter from these investors outlines specific concerns and questions the signers have relating to the fiscal plan for Puerto Rico.

The signers of the letter have again made clear their willingness to engage the Puerto Rico government and the oversight board in a consensual process. Indeed, they have made many previous attempts to do so.

The letter specifically outlines how the fiscal plan certified by the board violates PROMESA along with its other shortcomings, including:

• The plan fails to comply with lawful priorities as established by Puerto Rico's constitution and required by PROMESA.

• The plan does not differentiate between expenses for essential services and expenses for non-essential services and, in fact, prioritizes all non-debt expenses above debt service.

• The plan contains rampant expense growth and assumes that Puerto Rico will not adhere to its own budget by requesting a $600 million annual "cushion" to pay for non-budgeted expenses.

• The plan contains certain omissions, unexplained numbers and assumptions including those related to tax collection rates and macro-economic assumptions.

• The plan undermines investor confidence in Puerto Rico, making it very unlikely that the Commonwealth will be able to access the capital markets any time soon.

The signers of the letter asked for the opportunity to immediately discuss these issues with the Oversight Board and Puerto Rico, with the expressed goal of advancing negotiations and achieving a consensual resolution under Title VI of PROMESA.
Reads: 3856

Click here to receive daily news headlines from Caribbean News Now!



No comments on this topic yet. Be the first one to submit a comment.


As a result of our comments feature being overtaken in recent weeks by spammers using fake email addresses, producing a large number of bounced verification emails each day, we have reluctantly decided to suspend the comments section until further notice.

User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.

Other Headlines:

Regional Sports: