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Puerto Rico governor calls for swift debt restructuring

Puerto Rico governor calls for swift debt restructuring

SAN JUAN, Puerto Rico (AP) — Puerto Rico Governor Alejandro Garcia Padilla is urging his successor to demand that a federal control board overseeing government finances move immediately to restructure much of its nearly $70 billion in debt.

The outgoing governor tells Governor-elect Ricardo Rossello in a letter released Friday night that the commonwealth cannot afford to pay $3.5 billion in annual debt service.

He says Puerto Rico faces $3 billion in additional liabilities by 2018 after federal health care funding sources and pension system assets are depleted and warns that action is needed before a litigation stay against creditor lawsuits expires in February.

The board can restructure debt through a court-supervised bankruptcy process but board chairman Jose Carrion has said it will try to reach voluntary deals with creditors.

Rossello takes office on Jan. 2.


Updated : 2021-01-23 04:42 GMT+08:00