A new fiscal plan that leaves the Puerto Rico with less money to cover its debts pushed the value of certain bonds down as much as 9 percent last week through Thursday, according to Municipal Securities Rulemaking Board data, the Wall Street Journal reported. The market value of that $14 billion has dropped to $8 billion as Puerto Rico’s financial condition worsened over time, according to the most recent information available from Morningstar. The lower value doesn’t necessarily equate to $6 billion in losses because the funds could have purchased the bonds at any time over the past several years as the value dropped. Puerto Rico Gov. Ricardo Rossello had initially proposed earmarking about $1.2 billion a year for debt repayment over the next decade. But the fiscal control board that Congress created to oversee a debt restructuring required him to revise his economic forecasts downward. That left about $800 million for annual debt service.
