Hedge funds holding Puerto Rico’s general-obligation bonds are asking a court to stop the commonwealth from directing sales-tax revenue to repay other debt backed by that money because it violates the island’s constitution, Bloomberg News reported on Friday. It is the first legal action for the U.S. territory that pits general-obligation bondholders against investors of sales-tax debt.
Puerto Rico in Distress
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Puerto Rico's economic activity index (EAI) for August fell 1 percent from a year earlier, the U.S. territory's fiscal agency reported yesterday, Reuters reported. The Caribbean island's total EAI, an economic measurement correlated to gross national product, was 124.1 in August, the Puerto Rico Fiscal Agency and Financial Advisory Authority said in a monthly report.
Puerto Rico’s fiscal control board appointed Jose Carrion III chairman and set a two-week deadline for the commonwealth to produce a financial plan during its first meeting on Friday, the Wall Street Journal reported on Saturday. The meeting attracted about 50 demonstrators who surrounded the entrance to the Alexander Hamilton U.S.
Puerto Rico's governor said yesterday that he has proposed to the U.S. territory's fiscal oversight board a timeline to present the board with a financial turnaround plan in two weeks, Reuters reported. Governor Alejandro García Padilla announced the timeline as part of a televised address, ahead of the oversight board's first meeting, scheduled for today in New York.
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This wiki is a repository for members of the U.S. Congress, other policy makers, academics, investors, the media and the general public to understand the challenges facing Puerto Rico in 2016 and to provide data and information to begin crafting long term sustainable solutions. Click here to view.