Puerto Rico in Distress

ABI Analysis

After openly acknowledging on Monday that it had not made a $58 million bond payment, the Puerto Rico quietly disclosed in a financial filing later that afternoon that it had temporarily stopped making contributions of $92 million a month into a fund that is used to make payments on an additional $13 billion in bond debt, the New York Times reported today.

Puerto Rico defaulted on a $58 million bond payment yesterday, a risky move that seemed to intensify the pressure on creditors for broader debt renegotiation, but might also make future borrowing far more difficult, the New York Times reported today.

The first visible sign that the health care system in Puerto Rico was seriously in trouble was when a steady stream of doctors — more than 3,000 in five years — began to leave the island for more lucrative, less stressful jobs on the mainland, the New York Times reported today.

UBS Group AG has confirmed a U.S. Justice Department criminal probe of an unnamed former employee in Puerto Rico, and disclosed a pair of related investigations by other regulators, the Wall Street Journal reported today. The former UBS employee is José Ramirez, a financial adviser who was fired last year.

Other Resources

The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.