Puerto Rico's finances: Another fine debt crisis
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Puerto Rico's finances
Startling parallels between Greece and an American outpost in the Caribbean
IN 2013 Alejandro García Padilla, the governor of Puerto Rico, did his best to tell the territory's jittery creditors what they wanted to hear. He called servicing the American-controlled Caribbean island’s $72 billion debt load a “moral obligation”. He reassured holders of its general-obligation (GO) bonds that the government could not default on them even if it wanted to, because the commonwealth’s constitution gave those securities priority over all other payments. He highlighted the swingeing package of tax increases, spending cuts and pension reform that he was implementing, and said that he would do whatever it took to honour the island's debts.
But after more than two years of stonewalling, Puerto …<div class="og_rss_groups"></div>
Source: The Economy