The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the U.S., The Washington Post reported yesterday.
Puerto Rico in Distress
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MatlinPatterson Global Advisers is raising money to invest in Puerto Rico, the beleaguered commonwealth that’s attracting debt investors wagering on a rebound, Bloomberg News reported yesterday. The firm, which oversees $7.5 billion, has invested about $150 million in the island.
Puerto Rico's governor confirmed yesterday that his administration recently pursued a proposal to request that the U.S. Congress allow the island's heavily indebted government to declare bankruptcy amid an economic crisis, the Associated Press reported yesterday. Gov. Alejandro Garcia Padilla's public acknowledgement of the proposal comes as the U.S.
Puerto Rico's net tax haul was $646.9 million in May, 14.1 percent below the same month last year, the U.S. territory's Treasury said on Friday, Reuters reported. The Treasury attributed the decline to one-time transactions last year.
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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.