{"id":20353,"date":"2016-05-02T05:17:35","date_gmt":"2016-05-02T10:17:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20353"},"modified":"2016-05-02T05:17:35","modified_gmt":"2016-05-02T10:17:35","slug":"puerto-rico-says-will-default-tomorrow-begs-congress-for-help-or-else-crisis-will-get-worse","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20353","title":{"rendered":"Puerto Rico Says Will Default Tomorrow, Begs Congress For Help &#8220;Or Else Crisis Will Get Worse&#8221;"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-05-01\/puerto-rico-default-virtually-certain-bond-prices-crash-record-low\">Puerto Rico Says Will Default Tomorrow, Begs Congress For Help &#8220;Or Else Crisis Will Get Worse&#8221;<\/a><\/h3>\n<div class=\"tabs\"><u><strong>Update:<\/strong><\/u>\u00a0PR Governor Padilla has spoken&#8230;<\/div>\n<div class=\"node\" data-mediaconductor-processed=\"true\">\n<div class=\"content\">\n<ul>\n<li><strong>*PUERTO RICO GOVERNOR SAYS WON&#8217;T PAY DEBT TOMORROW<\/strong><\/li>\n<li><strong>*PUERTO RICO GOVERNOR SAYS ISLAND WON&#8217;T PAY DEBT MONDAY<\/strong><\/li>\n<li><strong>*PUERTO RICO GOVERNOR: GOVERNMENT SIGNED MORATORIUM BILL YESTERD<\/strong><\/li>\n<li><strong>*PUERTO RICO NEEDS DEAL W\/ CREDITORS AND\/OR CONGRESS: GARCIA<\/strong><\/li>\n<\/ul>\n<p>And of course, demands a bailout&#8230;<\/p>\n<ul>\n<li><strong>*PUERTO RICO GOVERNOR CALLS ON U.S. CONGRESS, PAUL RYAN FOR HELP<\/strong><\/li>\n<\/ul>\n<p>And then threatens&#8230;<\/p>\n<ul>\n<li><strong>*CRISIS WILL GET WORSE IF U.S. CONGRESS DOESN&#8217;T HELP: GARCIA<\/strong><\/li>\n<li><strong>*PUERTO RICO GOVERNOR CONCLUDES REMARKS TO COMMONWEALTH<\/strong><\/li>\n<\/ul>\n<p>As we detailed earlier,\u00a0<strong><em>It&#8217;s D-Day in Puerto Rico.<\/em><\/strong><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-04-29\/puerto-rico-s-development-bank-reaches-33-million-debt-deal\">As Bloomberg reports,<\/a>\u00a0investors are finding little comfort in the Puerto Rico Government Development Bank\u2019s efforts to strike a last-ditch agreement with creditors to soften the blow of a default this weekend. The bonds that mature today (May 1st) have\u00a0<strong>crashed to just 20c (disastrously below the 36-cent recovery rate the commonwealth proposed in March)<\/strong>.<\/p>\n<p>It appears investors are not buying what Puerto Rico is selling and prefer to dump the bonds than hold out in hope of a &#8216;deal&#8217;&#8230;<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/05\/01\/20160501_PRBond.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2016\/05\/01\/20160501_PRBond_0.jpg\" width=\"600\" height=\"312\" \/><\/a><\/p>\n<p><strong>A default on the $422 million due today is &#8220;virtually certain,&#8221;\u00a0<\/strong>S&amp;P Global Ratings said April 11.<\/p>\n<blockquote>\n<div class=\"quote_end\"><strong>No matter which route Puerto Rico takes, credit-rating companies see a default as inevitable.\u00a0<\/strong>Moody\u2019s Investors Service analysts said last week that any non-payment, even if it\u2019s agreed to by creditors, constitutes a default in their eyes. S&amp;P Global Ratings said a distressed-debt exchange or temporarily withholding interest is synonymous to default.<\/div>\n<\/blockquote>\n<div class=\"quote_end\"><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-04-29\/puerto-rico-s-development-bank-reaches-33-million-debt-deal\">But as Bloomberg reports,<\/a>\u00a0Puerto Rico said its Government Development Bank, which is operating in a state of emergency to preserve its dwindling cash, reached an\u00a0<strong>agreement with some credit unions to delay $33 million of bond payments<\/strong>\u00a0as the commonwealth rushes toward a potential historic default.<\/div>\n<\/div>\n<div class=\"quote_end\">\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Puerto Rico Says Will Default Tomorrow, Begs Congress For Help &#8220;Or Else Crisis Will Get Worse&#8221; Update:\u00a0PR Governor Padilla has spoken&#8230; *PUERTO RICO GOVERNOR SAYS WON&#8217;T PAY DEBT TOMORROW *PUERTO RICO GOVERNOR SAYS ISLAND WON&#8217;T PAY DEBT MONDAY *PUERTO RICO GOVERNOR: GOVERNMENT SIGNED MORATORIUM BILL YESTERD *PUERTO RICO NEEDS DEAL W\/ CREDITORS AND\/OR CONGRESS: GARCIA [&hellip;]<\/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],"tags":[1719,3325,200,3824,7530,670,4318],"class_list":["post-20353","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond","tag-creditors","tag-default","tag-puerto-rico","tag-ratings","tag-recovery","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20353","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=20353"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20353\/revisions"}],"predecessor-version":[{"id":20354,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20353\/revisions\/20354"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}