Puerto Rico defaults on its $72 Billion Debt

Puerto Rico Governor Alejandro Padilla released a statement on Monday saying the governor said the island couldn’t pay its $72 billion in debts. The government of Puerto Rico failed its attempts at slashing expenditures and restructuring its debt. Former World Bank and International Monetary Fund released a report that acknowledged the true extent of the problem. Several massive payments are expected in the coming weeks. Padilla held a media conference for 5 p.m. addressing the situation.

Puerto Rico legislators are debating a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to help pay off the debt. The budget has to be approved by Tuesday. Puerto Rico’s bonds were popular with U.S. mutual funds because they were tax-free, but hedge funds and distressed-debt buyers began stepping in to buy up debt as the island’s economy worsened and its credit rating dropped. Economy experts including Jose Villamil, a former UN consultant and CEO of an economic and planning consulting firm believes that Padilla’s comments will not effect Wall Street.

Continue reading at Examiner.com 


Feel free to follow us on Social Media

Book of the Month



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.