Puerto Rico Gov. Ricardo Rosselló’s proposed fiscal year 2019 General Fund budget allocates $0 for paying the island's central government debt, the Bond Buyer reported. “The governor is clearly trying to lay the responsibility of debt service on the feet of the [Oversight Board] so he can disavow any money going to creditors,” said Shaun Burgess, portfolio manager for Cumberland Advisors, which owns some insured Puerto Rico debt. According to the April 19 board-certified fiscal plan, the central government and its related borrowing entities are contractually obligated to pay $2.54 billion in debt service in fiscal year 2019. The board’s March 13, 2017 certified fiscal plan put the figure at $3.84 billion in that year. The earlier plan included four entities that were not included in the April plan. These entities are contractually obligated to pay $398 million in fiscal year 2019 so this only partially explains the $1.3 billion distinction between the plans.
