Hedge funds’ involvement in the Puerto Rico debt crisis is leading U.S. Representative Nydia Velazquez (D-N.Y.) to propose legislation that would force the firms to reveal more about their investments, Bloomberg News reported yesterday.
Puerto Rico in Distress
Video Features
ABI Analysis
The Obama administration released its Puerto Rico plan last week to give the entire Commonwealth of Puerto Rico the ability to file for chapter 9 bankruptcy to deal with its debt crisis.
Debt service will consume less than 17 percent of Puerto Rico’s consolidated budget this fiscal year, according to an op-ed in today’s Wall Street Journal. In the general-fund budget, which does not include government-owned corporations and agencies, debt service is below 16 percent. Neither number sounds like grounds for declaring bankruptcy.
Puerto Rico Government Development Bank’s disclosure of its available cash is leaving investors wondering if they’ll be paid on Dec. 1, Bloomberg News reported yesterday. The bank, which oversees the island’s borrowings, had $875 million of net liquidity as of Sept. 30, according to a posting Wednesday on the agency’s website.