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 ...

Philippines Growing Faster Than Expected
The Philippine economy grew at a faster than expected 6.9%...
The British economy will hardly expand 0.3-0.4% per quarter through to June 2018, with growth of 1.5% this year and 1.3% the next.
British economic growth will remain tepid over the coming few...
Siemens to Cut 6,900 Jobs
Labor unions have reacted angrily to layoff plans unveiled by...
Italy Braces  for $1b Loss
Italy’s failure to qualify for the 2018 football World Cup in...
The rupee, bonds and stocks rallied after Moody’s upgraded India to Baa2 from Baa3 and said reforms being pushed through by Modi’s government will help stabilize rising levels of debt.
Forget India's economic troubles this year. Moody's thinks...
Malaysia GDP Expands Most in Three Years
Malaysia’s economy expanded at the fastest pace in more than...
Cheap ECB Cash Still Key for Eurozone
The eurozone economy remains dependent on cheap credit and the...
Norway’s $1 Trillion Wealth Fund Plans Divesting From Oil, Gas
Norway’s trillion-dollar sovereign wealth fund is proposing to...