Puerto Rico Defaults On $58M Debt

Having a similar situation like Greece, Puerto Rico has defaulted yet again on a major debt, reportedly worth of $58 million. The repayment was due on August 03 to US based mutual funds, OppenheimerFunds and Franklin Advisers.

Business Finance News reported the first ever default by Puerto Rico, led by Governor Alejandro Garcia Padilla, as the island was able to only pay $169 million payment to the Government Development Bank.

Similar to Greece, debt defaults will pave the path to a daunting future; leading creditors to demand swift repayments and mount pressure on the island’s administration to increase taxes on common goods by way of hiking sales tax. Not surprisingly, this will definitely take its toll on Puerto Ricans who are already suffering from record level unemployment, inflation, and widespread issues, such as unsatisfactory health care system.

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