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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The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.