{"id":19603,"date":"2016-04-06T19:41:33","date_gmt":"2016-04-07T00:41:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19603"},"modified":"2016-04-06T19:41:33","modified_gmt":"2016-04-07T00:41:33","slug":"governor-of-puerto-rico-set-to-impose-capital-controls","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19603","title":{"rendered":"Governor Of Puerto Rico Set To Impose Capital Controls"},"content":{"rendered":"

Governor Of Puerto Rico Set To Impose Capital Controls\u00a0<\/a><\/h3>\n
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Yesterday, in the latest plot twist surrounding the inevitable Puerto Rico default,\u00a0we observed\u00a0<\/a>that after the commonwealth island’s Senate passed a surprising bill to impose a debt moratorium on any future debt repayment, its bonds – predictably – tumbled.<\/p>\n

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We also noted that the legislation addressed the Government Development Bank, or GDB, which is facing speculation that it\u2019ll lapse into insolvency. The bank\u2019s receivership process, liquidity and reserve requirements and payment obligations would be suspended indefinitely, according to an analyst’s read of the bill, which also seeks to split the entity into a \u201cgood bank\u201d and \u201cbad bank.”<\/p>\n

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Hedge funds holding debt in the GDB sued on Monday to stop the bank from returning deposits to local government agencies as it faces a growing cash shortage. The funds, which include affiliates of Brigade Capital Management, Claren Road Asset Management and Solus Alternative Asset Management, accused the bank of seeking to \u201cprop up\u201d local agencies at the expense of other creditors. The GDB has a $422 million debt-service payment due May 1.<\/div>\n

The Government Development Bank serves the dual purpose of providing financial support to local governments and acting as a financial adviser to the commonwealth. The funds, which say they hold a \u201csubstantial amount\u201d of almost $3.75 billion in the bank\u2019s outstanding debt, blamed the entity\u2019s deteriorating condition on a \u201chopeless conflict\u201d between loyalties to Puerto Rico and to creditors.<\/p><\/blockquote>\n

Fast forward to today, when Puerto Rico Governor Alejandro Garc\u00eda Padilla signed a measure into law Wednesday that would enable him to declare a moratorium on the commonwealth\u2019s debt payments, mere hours after it cleared the Legislature amid concerns of securing enough support in the lower chamber and a full-court press by creditor lobbyists demanding changes to the bill.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Governor Of Puerto Rico Set To Impose Capital Controls\u00a0 Yesterday, in the latest plot twist surrounding the inevitable Puerto Rico default,\u00a0we observed\u00a0that after the commonwealth island’s Senate passed a surprising bill to impose a debt moratorium on any future debt repayment, its bonds – predictably – tumbled. We also noted that the legislation addressed the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[110,3325,200,10684,1167,3824,4318],"class_list":["post-19603","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-capital-controls","tag-creditors","tag-default","tag-government-development-bank","tag-greece","tag-puerto-rico","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19603"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19603\/revisions"}],"predecessor-version":[{"id":19604,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19603\/revisions\/19604"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}