Puerto Rico Needs a Better Debt Deal

Published on: Wednesday 10 October 2018

The COFINA restructuring doesn’t go nearly far enough. It saddles Puerto Rico with escalating debt payments for the next 20 years, even though the economy has been in a decade-long slump. It also sets a dangerous precedent. If Puerto Rico's government and the oversight board created by Congress agree to similar terms with creditors who hold General Obligation bonds, it will be just a question of time before the commonwealth is forced to default yet again or curtail public pension payments upon which more than 325,000 workers depend. By far the most important condition for a successful debt restructuring is a realistic assessment of the economy’s growth potential and its capacity to repay its debtors.

News source: https://finance.yahoo.com/news/puerto-rico-needs-better-debt-132120536.html

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My Financial News from Puerto Rico, Debt

Puerto Rico Needs a Better Debt Deal