Puerto Rico debt saga continues to unfold, slowly

Puerto Rico met its deadline for repaying $354 million in debt, the island’s development bank announced Tuesday, avoiding what some feared would be its first major default. But it was unclear how long the payments would continue or whether the Commonwealth would meet other looming deadlines between now and Jan. 1. The announcement of the repayments came as Gov. Alejandro García Padilla and other officials were testifying before the Senate Judiciary Committee, which is considering whether to give the island bankruptcy protection. The governor reiterated that Puerto Rico had run completely out of cash, and that as of Tuesday it was going to “claw back” certain revenues dedicated to paying debts, and use the money instead to provide government services and service general obligation bonds.

Source: Puerto Rico Meets Debt Deadline but Warns of Tight Finances – The New York Times

About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
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