“Puerto Rico’s governor has bluntly declared that the commonwealth’s $72 billion debt is unpayable.” …. this is a very difficult position for the “common folk” Puerto Ricans who remain in the Island … come “master”, now is the time to help!!
An editorial from The New York Times:
Puerto Rico’s governor has bluntly declared that the commonwealth’s $72 billion debt is unpayable. The issue now is how to come up with a credible plan to put the island’s finances and economy on sound footing.
A new report commissioned by Gov. Alejandro García Padilla makes clear that Puerto Rico is not generating enough revenue to provide public services and repay its debts. And even big spending cuts and tax increases will not fix that fundamental problem, according to the report issued by three former International Monetary Fund and World Bank officials.
Mr. García Padilla says he is prepared to make sacrifices, including cutting more spending; since 2009,government employment on the island has fallen by about 70,000, to 230,000. But he wants the commonwealth’s lenders, which include mutual funds, hedge funds and other investors, to reduce the principal owed on…
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