financial crisis escalating and statehood a masochistic fantasy, a multi-year transition to independence is the island’s best viable option. The island’s Government Development Bank (GDB) forked out only 8,000 of the million debt.
The price of the commonwealth’s newest general-obligation bonds fell near a record low, with the island pushed to the brink from years of borrowing to cover budget deficits. Next year it’s going to go up to 20 percent of its entire revenues. “The only real question is how much that’s borne across all the debt holders”.
“We believe the default signals severe liquidity distress, whereby Puerto Rico must now choose among which financial obligations it can honour, and presages other possible defaults as liquidity becomes further constrained during the next few months”, S&P said in the statement.