Will Puerto Rico Default Again?
World Economy

Will Puerto Rico Default Again?

Puerto Rico’s debt debacle could soon get a lot worse. The island’s government must pay about $1 billion to its creditors on Jan. 4 to avoid defaulting for the second time since August, CNNMoney reported. Even if it pays on time, Puerto Rico will still be saddled with a ton of debt–roughly $73 billion in total, according to Moody’s rating agency. The odds of Puerto Rico making the January payment aren’t good. “It will be very, very hard, very difficult to find a way to do that payment,” Alejandro Garcia Padilla, Puerto Rico’s governor, recently told CNN. “We’re out of cash.” In fairness, Padilla made similar claims last June before Puerto Rico made a $1 billion payment on July 1, avoiding default. But in August, the island defaulted on a small portion of its debt. And conditions have only worsened since then. Padilla appointed a “working group” to present a debt restructuring plan in September. That plan was broadly panned–and it fell $14 billion short of covering the island’s debt hole.

Short URL : https://goo.gl/6oEWwu
  1. https://goo.gl/oyQ5sq
  • https://goo.gl/yXfXkl
  • https://goo.gl/PBqt8W
  • https://goo.gl/OCMvg5
  • https://goo.gl/IMdZek

You can also read ...

Big Data, Online Markets Can Lead to Higher Prices
Information technology is not just transforming markets; it is...
Italy could set the stage for the bloc’s next crisis if it delivers on its tax-cutting and high-spending policies.
Capital investment in 24 of the EU’s 28 member states has...
Air India Sale Hangs in Balance
Uncertainty hangs over the Indian government's plans to sell...
Liu He (L) and Steven Mnuchin after the joint statement to avoid a trade war.
With "minutes to midnight", the great US-China trade war...
Bangla Trade Deficit Doubles
Bangladesh’s trade deficit has almost doubled within 12 months...
A meeting of eurozone finance ministers is set for June 21.
Greece’s creditors have agreed a program of reforms as the...
Cumulative gross financing needs could amount  to $69.3 billion for 2018 for the six-nation group.
While public debt levels remain at manageable levels for most...
Egypt Gets Bids for Power Plant
Egypt next week will announce the winning consortium to build...