Puerto Rico Risks Danger of Further Bond Defaults

Puerto Rico faces a severe debt crisis, owing $70 billion and defaulting on $143 million. The government has been using funds from other bonds to meet general obligations, a strategy known as clawback. The Government Development Bank's default could significantly impact investors. A major payment of $2 billion is due in July, with $800 million in general obligation debt. US lawmakers are working on a legislative solution, but time is limited as they aim to pass a bill before July 1.

What strategy has Puerto Rico employed to manage its debt obligations?

• Raising interest rates

• Withholding payments to suppliers

• Increasing exports

• Reducing public sector wages

What is the significance of the Government Development Bank in Puerto Rico's financial markets?

• It oversees the education sector

• It represents Puerto Rico in financial markets

• It is the primary lender to small businesses

• It manages the island's tourism industry

What temporary relief did the Government Development Bank obtain to avoid immediate legal action?

• A reduction in interest rates

• A bailout from the US government

• A forbearance agreement with bondholders

• A loan from international banks

What is the total amount due in July that poses a significant challenge for Puerto Rico?

• $1 billion

• $2 billion

• $3 billion

• $4 billion

What is the deadline for US lawmakers to pass a bill addressing Puerto Rico's financial crisis?

• June 1

• July 1

• August 1

• September 1