The Debt adjustment plan (PDA) violates pensions – it monopolizes public debate and is an obstacle in the legislature – two experts advised New day, In turn, highlighted the need for Puerto Rico to get its economic growth back on track.
According to economist Heidi Colero, reducing the debt from $ 27,500 million to $ 72,000 is the basis for Puerto Rico’s future. In his opinion, compliance with the obligations before the bonds is the “breathing space”.
“The adjustment plan has the approval of the majority of borrowers, significantly reducing the original amount of public debt, the debt service is more or less than $ 1,150 million, which is much less than the $ 3,000 million we owe. Pay. Without adjustment. This does not include payments.Said the expert in an interview New day.
An expert at Promise Law, who wanted to remain unidentified, agreed with Calero that the cuts in the PDA were substantial as the debt had been “significantly reduced”.
According to the Financial Supervision Board (JSF), Of the more than 100,000 disputed claims, non-performing fees by lenders are included in the debt reduction.
Similarly, the PDA reduces the amount of money Puerto Rico has to allocate to pay securities each year from about 25 cents to seven cents.
The approval of the plan would allow the securities to pay about $ 7,000 million, which, according to Calero, will be made “to sweeten the pill as they have not received a single penny for three to four years”. “
The PDA provides for the exchange of existing debt for new securities and the use of an unsecured portion of the sales and utility tax (SUT) and rum excise taxes as additional compensation for some debtors.
However, for the expert who spoke with El Nuevo Día, the PDA’s “best” payment is 25 to 30 years, which, in his opinion, helps predict long-term obligations.
Similarly, he stressed that the PDA has the support of a significant number of securities, which in other circumstances would have been approved without further delay.
The agreement was supported by a majority of securities and municipal insurers, as well as the Official Pensions Committee (COR) and the Uninsured Lenders Group (UCC).
“The adjustment plan, I see, is positive as we turn the page and focus on the really important ones and see how we are going to grow the economy of Puerto Rico. To pay off the debt service with the economic growth of Puerto Rico “Galero insisted.
Asked if the PDA would lay the foundation for Puerto Rico to experience short- and long-term economic growth, Callerro argued that part of the debt comes from public funds. There are surpluses to reducing credit service, and there will be money to stimulate economic growth.
“They offer us an opportunity to cut nearly $ 70,000 million in debt and we have a credit service that allows us to use the money in important things like developing the economy, infrastructure and essential services. The board, the legislature and the administration do not want to define it.”, Said the economist.
The future of the PDA remains uncertain because even though it was approved by the House of Representatives, some members of the Senate are skeptical of the move.
However, Senator Jose Luis Dolmav said the Senate would continue its agenda of approving the PDA on Tuesday, despite the board’s insistence on rejecting the agreement reached by the executive and the legislature on Tuesday.
Following an unusual hearing, Judge Laura Taylor Swain on Monday refused to adjourn the start of the PAD confirmation hearing, which is scheduled to begin on November 8.. He also ordered the board not to withdraw the PDA because he had threatened it before the legislative siege.
The board’s managing director, Natalie Zoresko, said they hoped the Senate would not approve the version of the PDA that would be considered tomorrow to replace the pension freeze.