US bill provides oversight and restructuring on Puerto Rico debt
Puerto Rico owes a whopping $70 billion dollars. On Friday, July 1, about $2 billion in principal and interest payments are due to be paid.
|Even though the U.S. Senate is in the process of approving a bill to restructure the debt, Puerto Rico Governor Alejandro Padilla made it clear that he would still not pay bondholders, saying: “On July 1, 2016, Puerto Rico will default on more than $1 billion in general obligation bonds, the island’s senior credits protected by a constitutional lien on revenues.” This will be the first time the US territory has ever missed a payment on its $13 billion general obligation, debt that according to the Puerto Rican constitution has top claim on government funds. Padilla claimed he would not have enough to make the payment even if he shut down the government.|