Puerto Rico’s Debt Problems Linger

New York (HedgeCo.net) – A delegation of officials from Puerto Rico traveled to New York on Monday to meet with 300 representatives from hedge funds, institutional investors and insurance companies.

The island nation faces debt repayment at the end of the month and there are great concerns on whether or not they will be able to pay those maturing debts.
The creditors listened to a plan that was prepared by three former IMF officials. The plan called for creditors to accept new bonds in exchange for their old bonds which would allow the country to lower debt payments and extend the maturity dates of the current debt.

The tiny nation of 3.5 million people has issued more debt than all U.S. states other than New York and California and should they default on the $72 billion worth of debt, it would mark one of the largest defaults from any municipality in the United States including cities, states and territories.

In all, the island faces $233.7 million in repayments over the next couple of weeks with $93.7 million due today and another $140 million due on August 1.

Rick Pendergraft
Research Analyst
HedgeCoVest

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