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Debt-Choked Puerto Rico at Fiscal Brink as Bond Buyers Pull Back

Bloomberg continues its impressive coverage of the disaster in Puerto Rico, now highlighting what has happened since US Treasury Secretary Jack Lew called leaders in the territory and told them to get their act together.

From the article:

It was April 28, and U.S. Treasury Secretary Jacob J. Lew called to tell Puerto Rico officials they must confront one of the island’s gravest financial crises without a bailout. Saddled with $72 billion in debt, the commonwealth — a U.S. territory since the Spanish-American War — needs a “credible” plan, Lew said.
The Caribbean island is hurtling toward the fiscal brink. After years of borrowing to paper over deficits, and with $630 million due to investors on July 1, Puerto Rico may confront the unthinkable: a default. The prospect has set Wall Street on edge as bond yields surpass those of Argentina and Greece; about half of municipal mutual funds hold commonwealth debt.

Is it time to panic yet?

About The Author

William-Jose Velez Gonzalez

William-José Vélez González is a native from Mayagüez, Puerto Rico, and a graduate from Florida International University in biomedical engineering, engineering management, and international relations. A designer with a strong interest in science, policy, and innovation, he previously served as the national executive vice president of the Puerto Rico Statehood Students Association. William-José lives in Washington, DC, where he works at the Children's National Research Institute and runs Opsin, a nonprofit design studio dedicated to making design more accessible. You can see him on Love is Blind as Lydia's brother. He is the founder and Editor in Chief of Pasquines.

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  1. Puerto Rico: A troubled treasure | All the politics - […] yeah, keep panicking. The following two tabs change content […]

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