BY MARY WILLIAMS WALSH
Puerto Rico has been effectively shut out of the bond market and is now financing its operations with bank credit and other short-term measures that are unsustainable in the long run. The biggest concern is that the territory, which has bonds that are widely held by mutual funds, will need some sort of federal lifeline, an action for which there is no precedent.
In a meeting with bond analysts in New York on Monday, the president of the Puerto Rican Senate, Eduardo Bhatia, said officials in the United States Treasury and White House had been analyzing the situation carefully, “wondering how they can help Puerto Rico send a very strong signal of stability right now.”
“We are waiting for some sort of an announcement from the Treasury and the White House,” he said without clarification. He also complained that analysts and investors did not appreciate the tough austerity measures that Puerto Rico pushed through in recent months.
Puerto Rico, with 3.7 million residents, has about $87 billion of debt, counting pensions, or $23,000 for every man woman and child. That compares with about $18 billion of debt for Detroit, with a little more than 700,000 people, or about $25,000 for every person in the city. Detroit and Puerto Rico have been rapidly losing population, leaving a smaller, and poorer, group behind to shoulder the burden.
"(My opinion on the way she wrote this article is that she's giving information about the problem that Puerto Rico has gone through and all the dept that Puerto Rico has and compares it to the one in Detroit.That in Detroit the dept is way less than in Puerto Rico and that in both places there's been a lose in population, leaving smaller, and poorer, group to shoulder the burden.I think that in this article she talks more informative about the country not judging it but letting the readers now what's behind the government and the economy.)"
No comments:
Post a Comment