Puerto Rico governor signs into law bill for debt moratorium

[alp227]

Source: AP

SAN JUAN, Puerto Rico (AP) — Puerto Rico's governor signed into law on Wednesday a bill that allows him to declare a fiscal emergency and implement a debt moratorium to prevent a shutdown of basic government services in the U.S. territory.

The law aims in part to help protect the island's Government Development Bank, which is running out of money and could face insolvency amid a decade-long economic crisis. The bank issues loans and oversees debt transactions.

A group of legislators dropped attempts to amend the bill to exclude some bonds from the moratorium, saying time was running out to address the bank's situation. They said they would file a separate bill later to deal with the exemption.

The bill would allow the bank to enter into receivership if needed.

Read more: http://bigstory.ap.org/article/bbe7ca7747ef40bcbe58c9bad0f4af06/puerto-rico-legislators-approve-bill-debt-moratorium

[KamaAina]

1. "The bill would allow the bank to enter into receivership if needed."

I'm sure the sharks are circling it even as we speak.