Puerto Rico with $73 billion in debt forced toward bankruptcy

https://www.washingtonpost.com/business/economy/puerto-rico-with-73-billion-in-debt-forced-toward-bankruptcy/2017/05/03/92e39d76-3020-11e7-9534-00e4656c22aa_story.html?utm_term=.a7585603f9e2

Puerto Rico teetered into insolvency Wednesday as the chronically troubled U.S. territory of 3.4 million citizens buckled under its ever-increasing debt, which stands at $73 billion.

The process that Puerto Rico has undertaken is a prelude to bankruptcy, but in this case it is tailored for governments. Given the size of the debt, it would be the largest such insolvency in U.S. history, far outstripping Detroit’s $18 billion restructuring in 2013.

“Puerto Rico’s problems have been decades in the making,” said Michael F. Williams, the attorney who represented Puerto Rico in its financial crisis litigation until recently. “One can only hope that this filing puts Puerto Rico on the path to a fresh start.”

Puerto Rico’s situation is not dissimilar to Detroit’s, which was the culmination of years of economic stagnation and bad policy. Puerto Rico, an island in the Caribbean that is about the size of Connecticut with half its gross domestic product, needs billions to stimulate its economy and upgrade its infrastructure, including its water and electrical delivery systems as well as waste collection. Both also face massive pension obligations.

A seven-member federal oversight board set Wednesday’s events in motion when it filed in U.S. courts to place the territory under protection from a growing avalanche of bondholder lawsuits.

The oversight board was empowered under legislation known as the Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA, to submit a plan to a court with the power to impose a settlement. A bankruptcy judge is expected to be appointed to oversee the process.

Investors had bought the bonds in the belief that Puerto Rico, like U.S. states, would not be allowed to fail and the debt would be protected. But many of the agencies that have issued government debt in Puerto Rico missed payments, putting them in default.

A maze of government-issued bonds through various taxing authorities and revenue streams complicated attempts by Puerto Rico to settle with bondholders.

———–

“Given the size of the debt, it would be the largest such insolvency in U.S. history, far outstripping Detroit’s $18 billion restructuring in 2013.”

what a clusterfuck..

“A maze of government-issued bonds through various taxing authorities and revenue streams complicated attempts by Puerto Rico to settle with bondholders.”

they cant even work out who owes what to who and when..

puerto ricans need to prepare for the “A” word..austerity..

401

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~ by seeker401 on May 5, 2017.

8 Responses to “Puerto Rico with $73 billion in debt forced toward bankruptcy”

  1. well…”the rich get richer…the poor get the picture”…the plan proceeds as programmed 😉

    • The rich get richer, the poor get the picture
      The bombs never hit you when you’re down so low
      Some got pollution, some revolution
      There must be some solution but I just don’t know
      The bosses want decisions, the workers need ambitions
      There won’t be no collisions when they move so slow
      Nothing ever happens, nothing really matters
      No one ever tells me so what am I to know
      You wouldn’t read about it, read about it
      Just another incredible scene, there’s no doubt about it
      Hammer and the sickle, the news is at a trickle
      The commissars are fickle but the stockpile grows
      Bombers keep acoming, engines softly humming
      The stars and stripes are running for their own big show
      Another little flare up, storm brewed in a tea cup
      Imagine any mix up and the lot would go
      Nothing ever happens
      You wouldn’t read about it, read about it
      One unjust ridiculous steal, ain’t no doubt about it
      You wouldn’t read about it, read about it
      Just another particular deal, there’s no doubt about it

  2. The poor people did not sign million dollar contracts for friends to earn millions of dollars. This is 100% the Governments fault. These Politicians are crooks. They do not work for those who Elected them into office. We are like roaches to these Politicians. They step on us all the time. It’s an abuse of power. We pay for the errors constantly consumed by the Government.

  3. If, the Puerto Rico people only knew of the money bill fraud by the banksters and the BAR, they could hold a Referendum by, for and of the people for a Truth & Reconciliation Commission and a debt jubilee;

    At some point every country will go belly up in this bankruptcy-for-debt Ponzi scheme; it will be up to we, the people to take lawful action; in peace

  4. Reblogged this on UZA – a people's courts court of conscience.

  5. Reblogged this on World Peace Forum.

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