Puerto Rico executive order grants power to take revenues from HTA, PRIFA

[Judi Lynn]

Puerto Rico executive order grants power to take revenues from HTA, PRIFA
Reuters
1 hour ago

NEW YORK (Reuters) - A Puerto Rico executive order signed by the governor grants the U.S. territory the power to take revenues from certain agencies including the highway authority HTA and the infrastructure authority PRIFA, according to a copy of the order.

Governor Alejandro Garcia Padilla earlier told a U.S. Senate Judiciary Committee that the island would have to "claw back revenues pledged to certain bonds issued in order to maintain public services" and to repay bonds issued with the full faith and credit of the commonwealth.

Puerto Rico said it made a Dec. 1 debt payment but warned that the threat of default loomed.

http://news.yahoo.com/puerto-rico-executive-order-grants-power-revenues-hta-182117764.html

(Short article, no more at link.)

[Judi Lynn]

1. Puerto Rico avoids second default, but future payments uncertain

Puerto Rico avoids second default, but future payments uncertain
Reuters
By Megan Davies and Nick Brown
11 minutes ago

NEW YORK/SAN JUAN (Reuters) - Puerto Rico made a crucial debt payment on Tuesday but warned that its deteriorating finances could trigger future defaults, as the governor granted the U.S. territory power to take revenues from public agencies.

There had been speculation Puerto Rico would default on all or part of the $355 million notes issued by its financing arm, the Government Development Bank. The U.S. territory said in a statement that it made the Dec. 1 bond payment despite "extreme fiscal challenges."

While Puerto Rico first defaulted in August, failure to make the payment on Tuesday would have been more significant because part of that debt was protected by the commonwealth's constitution.

Another default could have triggered lawsuits, further spooked investors and undermined the island's efforts to climb out of $72 billion in debt and forced it to take drastic measures to keep public services running.

More:
http://news.yahoo.com/puerto-rico-makes-december-1-debt-payment-171338741.html