Monday, August 3, 2015

Puerto Rico to miss payment, default looms

Large debt holders of Puerto Rico are demanding austerity - reducing public sector employment, increase taxes, and reform labor laws as a means of maintaining payment rather than default. Puerto Rico's battle between credit holders and the public will not only get worse but also won't have a happy ending for either party. This Greece-like contagion, a crisis that leadership describes as isolated and containable problems, continues to spread across the globe. The growing wave sovereign, state, and city defaults has yet to register on the public's radar of concern. This will change in 2016.

Headline: Puerto Rico to miss payment, default looms

Staggered by a $72 billion debt load, Puerto Rico was likely to miss a debt payment due Saturday, setting the stage for what could be one of the largest U.S. municipal debt restructurings.

Puerto Rico's government said Friday it would not make a $58 million bond payment due over the weekend.



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