OBoard to ask U.S District Court to pause $35B debt restructuring process
The Financial Oversight and Management Board for Puerto Rico announced that in light of the health crisis unleashed by the coronavirus (COVID-19), it will a motion in court to adjourn consideration of the proposed Plan of Adjustment’s disclosure hearing until further notice.
Less than a month ago, the Oversight Board presented a proposed Plan of Adjustment to reduce the Commonwealth’s liabilities by about $35 billion.
However, in light of Puerto Rico’s current reality, the Oversight Board believes the Government and the U.S.-appointed “sole focus should be on getting Puerto Rico through this unfortunate crisis,” it said in a statement.
Over the next few days, the Oversight Board will engage in discussions to work with the government’s leadership to “find reasonable and meaningful financial and policy solutions that ensure the safety and well-being of the island.”
“Working collaboratively with the government, the Oversight Board will provide appropriate, much needed support for those dislocated as a result of the COVID-19 situation and those that are not able to access eligible federal support,” the regulatory body said in a statement.
“We cannot, however, sanction and will point out actions that go against prudent and sound fiscal policy in protecting the interests of the people of Puerto Rico. Together, we all need to be responsible custodians of the people’s money,” it said.
“During these difficult times, the island’s leadership is stepping up to the height of the challenge at hand, providing reasonable, comprehensive, and sustainable solutions to this unfortunate reality,” it added.
The Oversight Board is an integral part of this process, committed to this work, and the people of Puerto Rico deserve no less, it stated.