puerto rico default


Puerto Rico’s government argues the missed payment should not be considered a default under a technical definition of the term. Moody’s ratings agency and others have rejected the claim.

You thought you had issue paying your bills. That nothing compared Puerto Rico. They have defaulted on their public debt. The government confirmed that it did not make a payment of $58m which was due. The US territory is just getting deeper into its decade long debt crisis. This should not be a surprise. There have been warnings that Puerto Rico could not repay the total $72 billion in public debt it had accumulated. The credit ratings agencies said the missed payment effectively a default no matter how Puerto Rico tries to spin it. Puerto Rico made a small partial payment of $628,000 interest but could not pay the rest which was due on Saturday.

The problem is that Puerto Rico’s tourist economy has been on a downturn while the rest of the islands in the Caribbean have been ramping up. So basically it could not keep up with it’s rivals.

“This event is consistent with our belief that Puerto Rico does not have the resources to make all of its forthcoming debt payments. This is a first in what we believe will be broad defaults on commonwealth debt.” ~Moody’s vice president Emily Raimes


The Governor, Alejandro Garcia Padilla was to give Puerto Rico public agencies the right to file for bankruptcy. The reason for this is that the administration feels that would help with an orderly restructuring of the territory’s debts. While that sounds legit. The proposal will and has had a very hard time winning any backing in the Republican led US Congress. The other side of the political line is not much better. The White House said there are no plans for a federal bailout. There is not much more the island do. It already raised it taxes. It has had pension reforms and deep spending cuts.


By Rubens Saintel

Proud father, #Haitian, photographer, consultant, writer & entrepreneur. I love video games, movies, plays, technology (surprise), beta testing apps and all things sci-fi. SaintelDaily.com |AppleWatch101.com | NBA101.com