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A12 WORLD NEWS
Saturday 30 September 2017

Maria dims Puerto Rico’s bleak economic outlook

however, economists are their electric or water bills
unsure if there will be any anytime soon. The Puerto
silver lining for Puerto Rico. Rican Power authority says
“Generally, what we find it could take months to
is that natural disasters are completely restore power.
just temporary problems Revenue from manufactur-
and in most cases after ing and tourism will also fall.
the rebuilding, things revert “The oversight board has to
to the long-term trends,” revisit the whole fiscal plan
said David Hitchcock, an and make a determination
analyst with S&P. “Unfor- based on the new reality,”
tunately, the longer-term said Rep. Nydia Velasquez,
trends already weren’t a New York Democrat who
very good.” Here are some was born on the island.
things to watch as Puerto “Puerto Rico today is total-
Rico confronts the dual ly different from the Puerto
challenges of natural disas- Rico of a week ago.” Jose
ter and economic chaos. Luis Cedeno, a spokesman
FISCAL RECOVERY PLAN IN for the board, said “all op-
LIMBO tions are on the table.” For
Puerto Rico’s efforts to put now, the board has autho-
its finances in order were rized $1 billion of the cur-
mired in controversy, law- rent budget to be diverted
In this Tuesday, Sept. 26, 2017 photo, Nestor Serrano walks on the upstairs floor of his home, where
the walls were blown off, in the aftermath of Hurricane Maria, in Yabucoa, Puerto Rico. Maria has suits and street protests. for hurricane relief. That’s a
thrown Puerto Rico’s already messy economic recovery plans into disarray. Now, the island must rethink fraction of the tens of bil-
(AP Photo/Gerald Herbert) everything. The oversight lions of dollars that the hur-
By ALEXANDRA OLSON U.S. territory. But as Puerto calculation of a fiscal plan, board appointed by Con- ricane is expected to cost.
Associated Press Rico emerges from the painfully negotiated with gress approved a 10-year BONDHOLDERS IN THE
NEW YORK (AP) — Hur- worst of the disaster, it will federal oversight board ap- spending plan in March LURCH
ricane Maria has thrown still face a $74 billion public pointed to oversee Puerto that chipped away at the The disaster is bad news for
Puerto Rico’s already debt load and a decade- Rico’s finances. While there government’s debt load the island’s investors, most-
messy economic recovery old economic recession is some potential for fed- while cutting employee ly mutual funds and hedge
plans into disarray. that has sent hundreds of eral recovery money and benefits and raising service funds that bought dis-
For now, the focus has shift- thousands of islanders flee- insurance payouts to jolt a fees. The plan must now tressed Puerto Rican bonds
ed from Puerto Rico’s finan- ing to the U.S. mainland. stagnant economy, much be revised to take into ac- at a discount in hopes of
cial woes to meeting the The hurricane has interrupt- depends on how much aid count expected revenue making a profit. Creditors
basic needs of its 3.5 million ed court proceedings and Congress will approve. losses and a drop in eco- can expect delays in the
people, many of whom still mediation efforts with cred- President Donald Trump on nomic output. Tax collec- restructuring process and
lack adequate food, water itors aimed at restructuring Friday promised the rebuild- tion is certain to plummet, will come under pressure
and power more than a the debt. The destruction ing effort “will end up being especially if more Puerto Ri- to accept even more re-
week since the Category 4 will severely disrupt rev- one of the biggest ever.” cans flee to the mainland. duced payments, said Ted
hurricane laid waste to the enue flows and force a re- With so many unknowns, And nobody will be paying Hampton, an analyst with
Moody’s Investor Service.
multiplying
Faced
with
Poll: Brazil president’s approval rating at just 3% lawsuits from creditors,
Puerto Rico sought a form
SAO PAULO (AP) — A new survey approve of Temer’s terviews conducted Sept. ing, calling the indictment of bankruptcy protection
poll in Brazil says embattled administration, while 77 15-20, as Brazil’s top pros- “filled with absurdities.” in May. The federal judge
President Michel Temer’s percent disapprove. In a ecutor charged Temer and This week’s poll had a mar- who is overseeing that pro-
already dismal approval previous poll from July, 5 key allies with leading a gin of error of 2 percentage cess, Laura Taylor Swain, in-
rating has sunk even further percent approved while 70 criminal organization. Te- points. No president has definitely postponed a key
to a new historic low. percent disapproved. mer was also accused of had a lower rating since Oct. 4 hearing because
Just 3 percent of respon- The latest survey is based obstruction of justice. Brazil’s return to democra- the hurricane paralyzed
dents in the Ibope Institute on 2,000 face-to-face in- He has denied wrongdo- cy in 1985.q the island. q