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Puerto Rico Defaults On Its Debts


Flag of Puerto Rico

In spite of the efforts of Lin-Manuel Miranda and other Puerto Rican activists, Puerto Rico has defaulted on its 422 million dollar loans on Sunday. They simply do not have the money to pay for it. They appealed, begged, congress for help but they did nothing. Because of Puerto Rico’s status as a protectorate rather than a state they can’t even declare bankruptcy. To make matters worse predatory creditors and hedge fund vultures are preying on the situation and putting even more pressure on the already embattled government. Governor Alejandro Garcia Padilla addressed the island last night to try and alleviate the populace. But it’s of little consolation. The economy of Puerto Rico is in the toilet which has caused widespread unemployment. As a result, there has been a surge in immigration from the island that hasn’t been seen in half a century.

And that isn’t the worst of it. In July they have a 2.2 billion dollar loan coming up. If they couldn’t pay 422 million they sure as hell won’t be able to pay 2 billion in two months. If congress doesn’t act to help Puerto Rico the resulting blow to the economy could be difficult to recover from. It may take years, even a decade. Let’s hope for the best.

 

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