Puerto Rico should avoid a potentially prolonged legal battle with bondholders by negotiating a reduction to its $70 billion debt, Bloomberg reported yesterday.
Puerto Rico in Distress
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Whatever Congress decides to do about Puerto Rico’s fiscal crisis, it isn’t likely to happen soon enough to keep the island commonwealth from defaulting on $2 billion worth of general obligation bond payments that are due July 1, and the chances Congress will agree on a plan at all appear to be growing slimmer, according to an editorial on Sunday by the Desert (Utah) News.
The U.S. House plans to vote next week on a proposal to address Puerto Rico’s debt crisis, but it’s not clear the measure has enough support to pass despite the backing of Speaker Paul Ryan and Minority Leader Nancy Pelosi, Bloomberg News reported today.