1、CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i Adjustment of Puerto Ricos Public Debts February 16, 2022 On January 18, 2022, a federal judge confirmed a plan of adjustment to restructure debts of the Commonwealth of Puerto Ricothe islands central governmentand certain
2、 closely linked public authorities, as well as pension plans for teachers, public employees, and judges. That confirmation resolves various legal disputes, albeit subject to appeals. It also reduces fiscal uncertainty that emerged once the depth of Puerto Ricos fiscal challenges became widely known.
3、 In 2015, then-Governor Alejandro Garca Padilla declared the islands public debts, totaling about $72 billion, “unpayable.” Unfunded pension liabilities were estimated at $55 billion. Puerto Ricos bonds had been issued by 18 different issuers, engendering disputes over payment priorities. Garca Padi
4、lla, citing provisions in Puerto Ricos Constitution, “clawed back” revenues from several public corporations to support the central governments general obligation (GO) bonds, which sharpened contention between those GO bondholders and public corporations bondholders. Moreover, some GO bonds appeared
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