Puerto Rico

Will Puerto Rico's Debt-Restructuring Deal End the Largest Bankruptcy in US History?

If courts confirm the agreement, it would effectively cut annual public debt payments from $3.3 billion to $1.1 billion

Pedro Pierluisi
Gabriella N. Baez/Bloomberg via Getty Images

The government of Puerto Rico and the federal fiscal oversight board that manages the U.S. territory’s finances have agreed on a debt-restructuring plan that could put an end to the largest bankruptcy proceeding in U.S history, which began in 2017.

Puerto Rico Gov. Pedro Pierluisi told NBC News Thursday that the federal oversight board had agreed to amend their previous version of the plan to eliminate cuts to pensions and provide more funding to the island's public university system, following longstanding disagreements over both issues.

The changes would align with a new law signed by Pierluisi on Wednesday that promises $500 million a year to the University of Puerto Rico until fiscal year 2027 and "zero cuts to pensions of current retirees and current accrued benefits of active public employees."

Read the full story at NBCNews.com

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