Title: Puerto Rican debt restructuring will see legal hurdles
Abstract: Significance The same day saw the release of a report, authored by former IMF economists, outlining a programme of structural reform and sweeping debt restructuring. Puerto Rico has seen its fiscal situation deteriorate for years, but with a series of debt repayments due in the next few days and the report, the crisis appears to be reaching a turning point. Impacts Tax-free municipal bond instruments are widely held by individuals, who will suffer from defaults. These investments are typically not leveraged, thus limiting the potential contagion effect of a default. Spillover effects could nonetheless raise the borrowing costs of the most vulnerable borrowers, such as Chicago.
Publication Year: 2015
Publication Date: 2015-07-01
Language: en
Type: other
Indexed In: ['crossref']
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