Puerto Rico Crib Sheet: Debt Deals, Economy Progress As Political Tension Grows

• According to Fitch, Puerto Rico’s economic recovery from the 2017 hurricanes and talks with creditors to restructure the territory’s massive debt burden has largely continued in line with expectations.

 

• However, tensions between the Federal Oversight & Management Board (FOMB) and the Puerto Rican government, led by Governor Ricardo Rosselló, will continue to simmer, particularly on the issues of fiscal austerity and structural reform.

 

• Moreover, concerns about the size and timing of rebuilding funds from the US have grown, potentially making Puerto Rico a political issue leading to the 2020 general election.

 

(Source: Fitch