Puerto Rico Bondholders Face Bigger Loss After Hurricane
- Debt tumbles by most since governor warned of looming defaults
- Federal oversight board said to meet to reasses fiscal plan
Why Puerto Rico Rejected $1 Billion Loan Offer
Even before Hurricane Maria devastated Puerto Rico, leaving billions of dollars in damage and crippling the electricity system, the island’s government said it could repay less than a quarter of what’s owed to bondholders over the next decade. Now, even that may be optimistic.
Prices of the U.S. territory’s bonds have plunged to record lows, signaling investors expect that there will be even less money available to repay its $74 billion of debt. On Friday, Puerto Rico’s federal overseers, who are in charge of pulling it from a financial collapse, plan to reassess the island’s fiscal plan -- including how much debt it can pay -- in light of the storm, according to a person familiar with the matter.