Puerto Rico Tax Plan Spurs Bet Island Will End Bond Logjam
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The $3.6 trillion municipal-bond market is signaling growing confidence that Puerto Rico lawmakers can enact a tax increase that would open the door to a debt sale and ease the island’s cash crunch.
Prices on the commonwealth’s most frequently traded bonds have risen to almost seven-week highs as its House of Representatives prepares to meet Wednesday and potentially vote on a plan to raise the sales levy. The governor and legislative leaders agreed on the tax proposal last week, part of efforts to boost revenue and revive an economy that’s saddled with $72 billion of debt.