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Government of Puerto Rico says it will lead negotiations with creditors

By on January 13, 2017

The one in charge of negotiating with different groups of creditors will be the Government of Puerto Rico, and not the Fiscal Control Board of Promesa. Nonetheless, the board “will be present” in this effort.

The Fiscal Board will not be in charge of talks with creditors, but the government of Puerto Rico will be. (File)

The Fiscal Board will not be in charge of talks with creditors, but the government of Puerto Rico will be. (File)

This is what indicated the Representative Before the Governing Body, Elías Sánchez, to Caribbean Business’s questions about if the government or the board will be in charge to lead negotiations with the creditors of the Government of Puerto Rico.

“The government of Puerto Rico will be the one negotiating,” Sánchez said in an aside with the reporters after this morning’s meeting between Board members and Governor Ricardo Rosselló.

The official added that, under the federal law Promesa, it is the government of the island that is responsible for carrying out the negotiation efforts between Puerto Rico and its creditors.

However, Sánchez emphasized that “it does not mean that it will be done in isolation” due to the power that the Board has over any agreement that the government of Puerto Rico reaches with its creditors.

“The product of the negotiation, whatever it is, has to be validated and certified by the Board. What does that mean? If the Board does not agree with the negotiation, [this] was futile,” Sánchez said.

Rosselló administration “will be leading the effort but the Junta will be part of them,” stated Sánchez. Similarly, he said he will also have the space, as a Representative before the agency, to participate “in any meeting” that the board sustains with creditors.

It is anticipated that both the government of Puerto Rico and the Fiscal Council will soon begin talking with advisers from different groups of creditors to resume negotiations on the country’s debt.

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