site stats

News

Puerto Rico Defaults On Debt


Puerto Rico was unable to pay on its debts this week and is now officially in default. The island was not able to pay 58 million dollars to the Public Finance Corporation. In fact the government of Puerto Rico says it only has enough money to stay afloat until November. After that, without any change, they will have to shut down the government. Puerto Rico’s governor Alejandro Padilla said that they are completely unable to pay the 72 billion dollar debt it has. What is being called for is a restructuring of the payments to make them more affordable. Basically, it is the same thing as your student loan payments. ACS or Sallie Mae or whatever ask for a ton of money but you can’t pay it because you are a humble writer on the Internet. So, they consolidate and restructure the loans so that you can pay them. It’s the same thing, except a country.

If Puerto Rico does default further on their loans it could cause a massive problem. Like, an economic meltdown. Investors are already pulling up stakes in PR after this first default. This could cause a crisis that could send the island into a tailspin. Let’s hope not.

Promoted Content
scrolling="no">

0 Responses to "Puerto Rico Defaults On Debt"