Puerto Rico’s $72 billion in Debt ‘Unpayable’ as Island Seeks Bankruptcy

Puerto Rico’s $72 billion in Debt ‘Unpayable’ as Island Seeks Bankruptcy

Puerto Rico, a commonwealth estimated to have roughly US$72 billion in debts, announced this week that the accumulated debt simply cannot be paid. Governor Garcia Padilla stated: As a commonwealth, however, Puerto Rico does not have the option to declare themselves bankrupt. Most of the debt is based on mutual funds or other investments led by individual investors in the U.S., and is therefore difficult to handle or negotiate. “The debt is not payable. There is no other option. I would love to have an easier option. This is not politics, this is math.” Instead, Governor Padilla and his....


Related News

Bitcoin and Puerto Rico Condom Price Freeze

Puerto Rico is sick. A government-mandated freeze in the price of condoms, because of an explosion in the number of cases of the Zika virus, exposes at least that much. Unfortunately, the island territory is also afflicted by a second, even more dangerous disease, one that will require much more than some latex protection to stop. Puerto Rico’s deadlier disease. That is not to say that the Zika virus is a laughing matter. The disease is currently sweeping across South America, and, when found in pregnant women, has been shown to cause birth defects in up to 30% of offspring, some of which....

Puerto Rico Proposes Long Term Payout for its US$72 Billion Debt

The government of Puerto Rico, which trapped itself into a staggering US$72 billion debt, has presented a long term payout proposal to its creditors. Government officials of the Caribbean island held several meetings with their creditors to negotiate the terms of the agreement, in an attempt to delay their payments for its large bond payments which are due in a few months. Puerto Rico’s government offered to swap its existing bonds for two new types of securities to get ahold of an adequate cash reserve to restore its economic growth and stability. “We believe the proposal we presented is....

Puerto Rico Defaults on Debt: Invest in Bitcoin Instead

Puerto Rico defaulted on its public debt. The US island territory failed to pay its general obligation bonds on Friday. It owes an estimated $800 million to creditors, while only retaining $350 million in cash on hand. A spokesperson for the governor defended the decision on Thursday: “This administration continues to take historic steps to ensure the residents of Puerto Rico continue to receive essential services while the commonwealth continues to face a delicate financial situation.” Debt in theory guaranteed by the Puerto Rican constitution. According to the constitution of Puerto....

Puerto Rico May Look To Bitcoin Benefits

The Puerto Rican economy is very volatile right now. The ongoing crisis seems to be getting worse everyday. The small population of Puerto Rico has one of the biggest outstanding debts compared to other large countries surrounding it. With over 70 billion USD in debt and a recent credit rating downgrade the citizens are experiencing the turmoil first....

Puerto Rico Debt Default Creates Bitcoin Opportunities

Working out a repayment plan should be the top priority for the Puerto Rican government, but that will not be the case for the foreseeable future. Puerto Rico is not often mentioned in a positive content when it comes to the financial sector. Neither is this story, unfortunately, as the country decided to default on its debt. But at the same time, the reason for doing so makes a lot of sense. All of this is still somewhat good news to push Bitcoin adoption in the country to new heights, though. Defaulting on debt is never a good thing, particularly not for a region so deeply indebted as....