Puerto Rico Lists Debt-Service Moratorium as Risk in 2016
This article is for subscribers only.
Puerto Rico warned it could place a moratorium on debt payments or put revenue from public corporations toward general obligations next fiscal year if the government can’t cut spending or generate more revenue.
Junk-rated Puerto Rico needs to sell as much as $2.9 billion of bonds backed by oil taxes to raise money for its Government Development Bank, which lends to the U.S. commonwealth and its localities. Without that borrowing, the government and the GDB may deplete their cash by Sept. 30, according to a quarterly filing posted Thursday on the Municipal Securities Rulemaking Board’s website.