SAN JUAN, Puerto Rico: Puerto Rico’s fragile economy is facing an uncertain future after the island’s governor rejected a settlement announced late Sunday with bondholders that would reduce the US territory’s public debt by 70 percent.
The settlement is the biggest one to date since the island’s government announced in 2015 that it was unable to pay its more than $70 billion public debt load and filed for the largest US municipal bankruptcy in May 2017.
It’s unclear whether the deal will become final, with Gov. Wanda Vázquez saying it places too heavy a burden on the island’s retirees and noting that it still requires legislative approval. The deal also has to be approved by a federal judge overseeing a bankruptcy-like process for Puerto Rico.
“If the bondholders receive better treatment in the bankruptcy process, so should retirees,” she said. “This is an issue of basic justice.”
She said bondholders received new legal protections in amendments made to a September 2019 adjustment plan, but that retirees did not receive anything additional.
It’s the latest clash between Vázquez and a federal control board overseeing Puerto Rico’s finances, which reached the deal with several groups of bondholders to reduce the island’s bond debt from some $35 billion to roughly $11 billion.
Natalie Jaresko, the board’s executive director, said the island’s bankruptcy needs to be resolved.
“The new agreement is another step forward for Puerto Rico, one that gets the island much closer to ending bankruptcy and to the beginning of a true economic recovery,” she said in a statement.
Board members did not respond to the governor’s rejection of the settlement, and a board spokesman did not return a call for comment.
The announcement comes as Puerto Rico struggles to recover from Hurricane Maria, which hit as a Category 4 storm in 2017, and a series of strong earthquakes that have damaged or destroyed hundreds of buildings along the island’s southern region.
Over the weekend, Puerto Rico government officials including Vázquez accused the board of delaying approval to release funds to help those affected by the quakes, accusations that the board denied in a letter earlier on Sunday before it announced the debt deal.
“Allegations that the...board has over 50 pending requests including for food, water and portable toilets are untrue,” it said. “None of the ten requests received were for portable toilets or water. All requests were processed within hours of receipt.”
Many have criticized Vázquez’s administration over its response to the 6.4 earthquake that killed one person on Jan. 7 as heavy aftershocks keep further damaging buildings.
Meanwhile, Puerto Rico economist José Caraballo told The Associated Press that he worries the deal could threaten basic government services and leave the island without sufficient funds to respond to the pending needs from the hurricane and earthquakes.
“The risk of a second bankruptcy and a prolonged recession is bigger than before,” he said.
Puerto Rico is mired in a 13-year recession, and roughly half a million people have left the island in the past decade, fleeing from the economic crisis and the aftermath of the hurricane and earthquakes.
Puerto Rico’s economy in limbo as governor rejects debt deal
https://arab.news/vjq79
Puerto Rico’s economy in limbo as governor rejects debt deal
- Gov. Wanda Vázquez says settlement places too heavy a burden on the island’s retirees and noting that it still requires legislative approval
- Puerto Rico filed for the largest US municipal bankruptcy in May 2017
Major airlines suspend, reroute flights amid US-Israel strikes on Iran
- Saudia says decision taken in line with aviation safety and security standards
- Emirates said it temporarily suspended it's operations out of Dubai
RIYADH: Major international airlines across the Middle East and South Asia have suspended, canceled or rerouted flights following ongoing US-Israel attacks on Iran and the resulting airspace closures, according to official statements issued via X.
Saudia said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The airline said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
بيان رسمي من #الخطوط_السعودية pic.twitter.com/CHfjKj9yLX
— Saudia Group | مجموعة السعودية (@SaudiaGroup) February 28, 2026
Air Arabia said its flights were experiencing cancellations, delays or rerouting as a result of the evolving situation and airspace closures.
The airline advised passengers to check the status of their flights before traveling to the airport by visiting its website or contacting its call center.
Customers booked on affected flights will be notified directly, the airline said, adding that further updates would be provided as the situation develops.
Air India announced a broader suspension, stating that “in view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended.”
The airline said it remains committed to maintaining the highest standards of safety for passengers and crew and will continue to assess the safety and security environment for flight operations, adjusting services proactively as required.
Air India said its teams would extend necessary support to passengers and advised customers to check flight status online or contact its 24/7 call center for assistance.
#TravelAdvisory
— Air India (@airindia) February 28, 2026
In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended. We remain committed to maintaining the highest standards of safety for our passengers and crew. We will continue to…
All flight operations at Dubai International and Dubai World Central – Al Maktoum International are suspended until further notice, according to a post by Dubai Media Office on X.
Dubai-based Emirates reported that regional airspace closures had caused disruption to several of its flights and that the airline had temporarily suspended its operations from its hub Dubai.
The airline said it is actively monitoring the situation, engaging with relevant authorities and adjusting operations in line with the latest developments.
The carrier apologized to affected customers and said it is assisting them with rebooking, refunds or alternative travel arrangements, reiterating that the safety and security of passengers and crew remain its highest priority.
Due to multiple regional airspace closures, Emirates has temporarily suspended operations to and from Dubai.
— Emirates Support (@EmiratesSupport) February 28, 2026
Emirates urges customers to check https://t.co/Ucm3UswfVh and https://t.co/yehFUeWZQq for the latest updates before proceeding to the airport.
We are actively monitoring… pic.twitter.com/SLDC7iNaUN
Qatar Airways confirmed a temporary suspension of flights to and from Doha due to the closure of Qatari airspace.
The airline said it is working closely with government stakeholders and relevant authorities to support impacted passengers and will resume operations once the airspace reopens.
It warned that delays are anticipated when usual operations resume and said additional ground staff have been deployed at Hamad International Airport and other key airports to assist passengers.
Temporary Suspension of Qatar Airways Flights due to Qatari Airspace Closure
— Qatar Airways (@qatarairways) February 28, 2026
Qatar Airways Group confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.
The airline is working closely with government stakeholders and the…
Meanwhile, Al Jazeera reported that British Airways had canceled flights to Tel Aviv and Bahrain, adding to the list of carriers adjusting operations.
Across their statements, airlines consistently cited airspace closures and safety considerations as the primary reasons for suspensions and disruptions, while urging passengers to monitor official channels for updates as the situation continues to evolve.
