Skip to comments.Puerto Rico approves measures to manage debt load
Posted on 01/23/2014 6:30:04 PM PST by Olog-hai
Puerto Ricos Senate approved several measures late Thursday aimed at helping the U.S. territory take on new loans and better manage its ability to repay an existing $70 billion public debt, an issue that has worried investors.
One measure would create a corporation responsible for issuing bonds to help pay and refinance some of the $590 million in debt held by the islands municipalities. The corporation would use a portion of revenues generated through an existing sales and use tax to guarantee payment. As a result, municipalities would see a slight drop in revenues they receive through the tax. Another measure would create a special fund for those revenues that would be overseen by the Government Development Bank.
Sen. Jose Nadal Power said the measures are essential to help raise the funds necessary to protect the credit of Puerto Ricos general obligation bonds, which currently hover just above junk status.
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Ping to cll.
Yes - what an answer. Issue MORE debt to solve the debt problem...
The population of Puerto Rico is about 3.5 million.
So the debt is approx. $20,000 per person (every man, woman and child). On an island that the average person who works probably makes $10,000/year.
He's dead Jim...