As Puerto Rico seeks to restructure its debt, ‘Everything is on the table’

As Puerto Rico seeks to restructure its debt, "everything is on the table," said Jose Carrion, chairman of the island's Financial Oversight and Management Board.

The U.S. territory already owed $72 billion in debt before Hurricane Maria slammed ashore in September. Now, the government estimates it will cost $94 billion to rebuild.

"There's no doubt we're in a tough spot," Carrion said in an interview with CNBC's "Power Lunch."

"Circumstances have changed after Hurricane Maria which is why we are re-evaluating and will be redoing the fiscal plan, which we had certified last March."

As part of that re-evaluation, members of the Financial Oversight and Management Board were in New York on Tuesday to hear the public's concerns about recovery efforts.

Puerto Rican bonds plunged in October after President Donald Trump told Fox News that Puerto Rico's debt will have to be wiped out.

Responding to Trump's comments, Carrion said the debt "certainly needs to be restructured."

"The majority view amongst the people of Puerto Rico is that we must repay some of our debt. I say some because it needs to be restructured," he said. "We owe over $72 billion in debt, and it's simply an untenable situation for Puerto Rico."

He said Puerto Rico plans to put together a credible fiscal plan that will re-establish investor confidence and allow the government to eventually return to the capital market.

Click to show more