Board: Smaller surplus available for Puerto Rico creditors
The executive director of a federal control board overseeing Puerto Rico's public finances said Wednesday there will be a smaller surplus available for creditors, while a bond insurance company filed a lawsuit seeking to nullify a fiscal plan that aims to pull the U.S. territory out of its economic crisis. Executive director Natalie Jaresko told reporters that Puerto Rico's government could see a $35 billion surplus in the next 30 years, $4 billion less than originally projected in the fiscal plan approved recently by the board. She noted not all the money would necessarily go to creditors seeking to recover part of their investment in Puerto Rico bonds as the government tries to restructure a portion of its more than $70 billion public debt load amid an 11-year recession. "It's a basis for what's available," she said. Assured Guaranty Corp., which insures $1.4 billion in Puerto Rico general obligation bonds, filed a lawsuit Wednesday asking a judge...