The agreement was born out of these discussions and will provide better recovery interest to the three categories of bondholders with general obligation. Those who were originally promised 64 cents on the dollar would receive 74.9 cents, the 45 cents offered 69.9 cents and the 35 cents offered 65.4 cents. Puerto Rico has reached an agreement with many of its general bondholders – and with the holders of the Constitutionally protected Puerto Rico Building Authority. SAN JUAN – The Financial Oversight and Management Board (FOMB) for Puerto Rico announced Friday that support for the Amended Plan Support Agreement (PSA) with General Commitments (GO) and Public Buildings Authority (PBA) bondholders announced earlier this month by bondholders worth $8 billion on bondholders worth $10 billion , including Puerto Rican credit unions and traditional local investors. In a statement, the chairman of the supervisory board, José Carrién, said that the agreement « reduces the total amount of debt payments compared to the agreement we reached last year, repaid the debts of general interest earlier and had much more support from the bondholders, which will further facilitate Puerto Rico`s exit from bankruptcy. , which lasts for three years. Under the agreement, bondholders must reduce an average of 29% for GO bonds and 23% for PBA bonds, less than the 36-65% discounts contained in the September adjustment plan. The board had targeted more than $6 billion in go bonds in 2012 and 2014 for small recoveries, saying they were issued in violation of Puerto Rico`s constitutional debt ceiling. « We are doing a lot in these agreements to protect the people of Puerto Rico, » she said. The agreement does not contain obligations issued by Puerto Rico`s power authority or other agencies providing drinking water and public works on the island.
Nor does it apply to the approximately $50 billion in pensions that the island owes its retired employees — the largest debt in the territory. But the announcement of the agreement was confusing – the supervisory board gave priority to the art of selling clarity.