Puerto Rico Will Default on $37 Million in Debt on New Year’s Day
Gov. Alejandro Padilla said the island’s government would do “all [it] can to avoid” the shutdown of vital services.
Children play in a fountain in the Puerto Rican capital of San Juan. (Ricardo Mangual / CC BY 2.0)
Children play in a fountain in the Puerto Rican capital of San Juan. (Ricardo Mangual / CC BY 2.0)
Puerto Rico will default on $37 million in debt repayments on New Year’s Day, says Gov. Alejandro Padilla.
The Guardian reports:
The troubled commonwealth is at loggerheads with investors over plans to restructure $70bn in debts that have triggered a financial crisis on the island leading to mass migration, school closures and escalating unemployment and poverty.
The island began defaulting on payments in August and faces close to $1bn in interest payments in 2016. Padilla said Puerto Rico would pay $354m of its obligations but will default on $35.9m of Puerto Rico Infrastructure Financing Authority debt and $1.4m of Public Finance Corp bonds, Padilla said. He also warned that the island did not have the cash to pay $400m due in May in Government Development Bank bonds.
Padilla said the island’s government would do “all [it] can to avoid” the shutdown of vital government services.
Continue reading here.
— Posted by Alexander Reed Kelly.
Strong Journalism, Rooted in TruthTruthdig remains committed to deep reporting that challenges power and brings hidden stories to the surface.
Support independent journalism.
Book Review
A new book by former Greek finance minister Yanis Varoufakis argues that capitalism as we knew it has been displaced by a twenty-first century feudalism.
Politics
The west's hypocritical approach to refugees.
EU leaders accuse Erdogan's government of using the refugees' desperation "for political purposes" as open-borders policy causes rush.
Greece fires tear gas and stun grenades on crowds seeking refuge after Turkey declares its previously guarded gateways to Europe open.
Thousands try to enter Greece by land and sea, trying to escape a Russian-backed Syrian offensive in Idlib province.
After vowing to end America's forever wars, the president has thrust the country head-first into a dangerous, likely intractable conflict.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.