Congress Considers Low-Interest Loans for Puerto Rico
- After defaults, bankruptcy, island may be unable to borrow
- Puerto Rico bonds have tumbled as investors brace for losses
Puerto Rico's Debt Burden Impedes Road to Recovery
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Congress is considering a White House request to give Puerto Rico access to a $4.9 billion low-interest Treasury loan so it doesn’t run out of cash as the island recovers from a crippling hurricane, according to a House aide.
The step would provide a needed financial lifeline to the U.S. territory of 3.4 million people that’s been operating in bankruptcy since May, which makes it difficult -- if not impossible -- for the government to borrow on its own. The loan authorization may be included in a $29 billion disaster assistance bill set to be voted on in the House this week.