Monday, June 29, 2015

Now Puerto Rico Admits Debts ‘Not Payable’

Puerto Rico’s governor has admitted that the island’s  $70 billion debt pile is “not payable”.

In an interview with NYT, Puerto Rican Governor Garcia Padilla said that Puerto Rico would seek to restructure its liabilities, including some debt payment deferrals and extended repayment schedules, without giving further details.

“There is no other option. I would love to have an easier option. This is not politics, this is math,” he told the newspaper. He added that creditors must now “share the sacrifices” already imposed on the island’s residents.

1 comment:

  1. For every dollar government gets hold of, they use it to leverage (ie borrow) even more money, usually in the form of bonds. A bond is just another tax, since it eventually has to be paid back by sucker taxpayers (ie us).