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Puerto Rico, creditors trade barbs over debt freeze bill
Source: Reuters
Markets | Tue Apr 5, 2016 8:02pm EDT
Puerto Rico, creditors trade barbs over debt freeze bill
SAN JUAN | BY NICK BROWN
Puerto Rico's House of Representatives on Tuesday debated a bill to halt debt payments, while a government official fired back at creditors who suggested the U.S. territory was shirking efforts to hold restructuring talks.
Burdened by a $70 billion debt load it says it cannot pay and a 45 percent poverty rate that has led to a steady exodus of its American citizens to the mainland, Puerto Rico faces economic collapse without a solution that either changes laws and/or involves an agreement with creditors.
The next key date is May 1 when the Government Development Bank, the island's primary fiscal agent, is due to pay creditors $422 million.
The island’s Senate passed an emergency bill early on Tuesday that would alter GDB’s structure, as well as allow Governor Alejandro Garcia Padilla to declare a moratorium on any debt payment he deems necessary. The House was expected to vote on the bill on Tuesday.
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Puerto Rico, creditors trade barbs over debt freeze bill
SAN JUAN | BY NICK BROWN
Puerto Rico's House of Representatives on Tuesday debated a bill to halt debt payments, while a government official fired back at creditors who suggested the U.S. territory was shirking efforts to hold restructuring talks.
Burdened by a $70 billion debt load it says it cannot pay and a 45 percent poverty rate that has led to a steady exodus of its American citizens to the mainland, Puerto Rico faces economic collapse without a solution that either changes laws and/or involves an agreement with creditors.
The next key date is May 1 when the Government Development Bank, the island's primary fiscal agent, is due to pay creditors $422 million.
The island’s Senate passed an emergency bill early on Tuesday that would alter GDB’s structure, as well as allow Governor Alejandro Garcia Padilla to declare a moratorium on any debt payment he deems necessary. The House was expected to vote on the bill on Tuesday.
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Read more: http://www.reuters.com/article/us-puertorico-debt-bondholders-idUSKCN0X22WI
