Board: Smaller surplus available for Puerto Rico creditors

SAN JUAN, Puerto Rico – The executive director of a federal control board overseeing Puerto Rico’s public finances says there will be a smaller surplus available for creditors because of a new lawsuit filed by a bond insurance company opposing a fiscal plan that aims to pull the U.S. territory out of its economic crisis.

Executive director Natalie Jaresko said Wednesday that Puerto Rico could see a $35 billion surplus in the next 30 years, $4 billion less than originally projected in the plan.

Assured Guaranty Corp. argues the board did not have the authority to approve the plan and is seeking to have a judge invalidate it. The company insures $1.4 billion in general obligation bonds issued by Puerto Rico.