Puerto Rico will default on a portion of the nearly $1 billion in debt obligations due to its bondholders on Jan. 4, CNBC.com reported yesterday. Top officials for the commonwealth have confirmed that it will not be able to make two out of the 13 total payments due Monday to bondholders.
Puerto Rico in Distress
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Running out of both time and money, debt-ridden Puerto Rico appears headed for default on at least some of the roughly $1 billion in bond payments that are due on Jan. 1, the New York Times reported today.
The United States is backtracking from its historic position acknowledging Puerto Rico's right to self-governance, Puerto Rico's governor says in a pending U.S. Supreme Court case over double jeopardy laws, Reuters reported yesterday.
As Puerto Rico runs out of cash and approaches a Jan. 1 due date for about $1 billion in debt payments, investors increasingly are uneasy about the fate of bonds sold with a near guarantee, the Wall Street Journal reported today. The bonds, backed by sales taxes and known by the Spanish acronym Cofina, were issued starting a decade ago to plug budget gaps and repay other lenders.
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This wiki is a repository for members of the U.S. Congress, other policy makers, academics, investors, the media and the general public to understand the challenges facing Puerto Rico in 2016 and to provide data and information to begin crafting long term sustainable solutions. Click here to view.