Puerto Rico will fail to make Aug.1 payment, signaling default

[Little Tich]

Source: Yahoo! News / Reuters

(Reuters) - Puerto Rico will miss a payment on debt due Aug. 1, the governor's chief of staff said on Friday, an event that will be considered a default by investors as the commonwealth lurches towards what could be one of the largest U.S. municipal debt restructurings in history.

The missed payment will mark the first default by the commonwealth and shows the depth of the island's economic and cashflow problems. Puerto Rico Governor Alejandro Garcia Padilla shocked investors in June when he said the island's debt, totaling $72 billion, was unpayable and required restructuring.

According to a 2014 bond offering statement, Puerto Rico has never defaulted on the payment of principal or interest of debt.

"Tomorrow is Aug. 1 and we don't have the money," Victor Suarez, chief of staff for Puerto Rico's governor, told journalists in San Juan, referring to a $58 million payment due on Public Finance Corporation (PFC) bonds.

Read more: http://news.yahoo.com/puerto-rico-fail-aug-1-payment-signaling-default-001224568--sector.html

[PoliticAverse]

1. Some graphs which illustrate their problem...

http://www.bloomberg.com/news/articles/2015-07-09/how-puerto-rico-s-debt-levels-compare-with-those-of-u-s-states

[AKing]

2. Does this mean anything for people traveling there?

[sa2968]

4. No it will not...

....however, what will effect people traveling here is our 11.5% sales tax on top of the 6% levied at the ports and the severe drought that covers at least half the island which has resulted in water rationing (24 hours on/24 hours off). I will not even get into the crime, corruption, and overall dismal quality of life we have here on the island. Enjoy!

[Geronimoe]

3. Turn them into a bank

Turn Puerto Rico into a bank so Obama and Congress will overnight bail them out.