Puerto Rico’s updated fiscal account pushes deficits to 2048

Fed says bond maturity runoff will be key tool to sink balance sheet

The updated fiscal plan follows U.S. District Court Judge Laura Taylor Swain’s approval on Jan. 18 of Puerto Rico’s debt restructuring plan. That decision allows the island to begin exiting its more than four-year bankruptcy process just as it’s set to receive more than $40 billion in federal funds in the coming years.

Puerto Rico can avoid budget shortfalls for the following 25 years since federal funds will help boost economic growth on the island as it exits bankruptcy, the commonwealth’s congressionally selected monetary oversight board said. The board Thursday is set to support a revised multi-year fiscal plan that consolidates federal funds Congress endorsed somewhat recently and new pension reserve trust that will help ease stress on the island’s budget. Those changes mean the commonwealth won’t confront potential budget shortfalls until fiscal 2048, as per Natalie Jaresko, the board’s executive director. Earlier estimates pegged shortages to start in fiscal 2036.

“This is the greatest opportunity that Puerto Rico’s ever had to ensure long term, medium term sustainable growth,” Jaresko told reporters Wednesday. “And the board’s fiscal plan is the road map for this.”

The updated fiscal plan includes payments to bondholders starting in the current fiscal year. That’ll be a first for Puerto Rico since defaulting on its general obligation debt in 2016.

It also incorporates Puerto Rico directing $10.3 billion during the next 10 years to a new pension reserve trust. That new fund will ease future commonwealth budgets as the island spends about $2.3 billion annually to cover benefits to public workers because the retirement fund is depleted.

“That pension trust provides predictability to the budget long term and without it the government would fall into deficits,” Jaresko said. “With it, the government does not until 2048.”

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Ubisoft Announces Two Xbox Game Pass Release Dates
Ubisoft Announces Two Xbox Game Pass Release Dates
For now, this is all we know about the future of Ubisoft on Xbox Game Pass. The company recently announced that its own service will be colliding with ...
Roller Champions is coming to PS4 next week, and it’ll be free to play
Roller Champions is coming to PS4 next week, and it’ll be free to play
Roller Champions looks like it’ll tread similar ground to Rocket League, in that it’s an accessible, arcadey sports title you can hop into for a few rounds. ...
The launch of Akasa Air may be delayed further as it awaits delivery of the aircraft
The launch of Akasa Air may be delayed further as it awaits delivery of the aircraft
Once the aircraft is inducted, then the airline has to conduct a set of successful proving flights. Akasa Air’s launch of services is probably going to be ...
The PNP is marching to the Ministry of Finance to protest against the fuel tax
The PNP is marching to the Ministry of Finance to protest against the fuel tax
Golding wants the price restriction set at $67.50 per barrel. Mark Golding, the President of the People’s National Party (PNP), today handed to the Ministry ...
Spam calls are now more secure on your phone.  However, it is still not safe
Spam calls are now more secure on your phone. However, it is still not safe
The FCC took a step Thursday to try to cut down on robocalls, but some loopholes for spammers remain. (John Raoux / Associated Press) If you haven’t been ...
Xbox Game Pass has two games available today (May 19)
Xbox Game Pass has two games available today (May 19)
Mow down thousands of night creatures and survive until dawn! Vampire Survivors is a gothic horror casual game with rogue-lite elements, where your choices ...
ABN Amro shares fall as bank's money laundering provision increases costs
ABN Amro shares fall as bank’s money laundering provision increases costs
The lender made a net profit of 295 million euros (S$430.3 million) in the first three months of the year, beating analyst expectations of 259 million euros ...
Arvind's March 2022 Consolidated Net Sales at Rs 2,203.50 crore, up 33.15% YoY
Arvind’s March 2022 Consolidated Net Sales at Rs 2,203.50 crore, up 33.15% YoY
Arvind shares closed at 109.05 on May 17, 2022 (NSE) and has given -12.34% returns over the last 6 months and 46.18% over the last 12 months. Net Sales at ...
iPhone Poppy Playtime Chapter 3 release date
iPhone Poppy Playtime Chapter 3 release date
The factory’s toys have come to life and are aggressively striving to hurt other people. Additional VHS tapes were supplied for replay throughout the ...
iOS 16 will include new ways to interact with the system, as well as new Apple apps
iOS 16 will include new ways to interact with the system, as well as new Apple apps
iOS 16 to Offer New Ways of Interacting With the System Along With Fresh Apple Apps. The news was shared by Mark Gurman in his latest Power On newsletter, ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo