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Significance
This provides a 25-year debt servicing schedule, but leaves suppliers with unpaid public service contracts as the main losers. Puerto Rico’s finances will be under renewed scrutiny this week as the US House of Representatives holds hearings on two different bills that would offer a path to statehood.
Impacts
After a period of deep uncertainty, the debt settlement should help near-term business confidence rebound.
Washington’s interest is linked to next year’s congressional elections, as Puerto Rico’s future is a political issue in Florida.
The island’s infrastructure has suffered heavy damage recently, but the debt settlement should provide a framework for recovery.
Keywords:
Puerto Rico,
NA,
United States,
economy,
politics,
debt,
infrastructure,
investment,
reform,
aid,
government,
fiscal,
tourism
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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