Caribbean

ISDA’s Determination Committee was in its third day of deliberation on Thursday over whether the Commonwealth of Puerto Rico has triggered a failure to pay credit event, following the island having suspended as much as $1bn of general obligation debt payments that it was scheduled to make on July 1.

Puerto Rico’s development bank made a $354m debt payment this week, narrowly staving off default.

Puerto Rico’s electricity authority has made a proposal to restructure its debt that could mean bondholders recover between 65% and 70% of principal in an exchange offer, following a default on the island's other debt over last weekend.