Puerto Rico's Looming Debt Deadline: Will Congress Help?

Puerto Rico faces a complex debt crisis, with the government Development Bank (GDB) at the center. The GDB has been crucial in structuring municipal bond deals, but now faces potential default. Negotiations are ongoing in Puerto Rico and Washington to address upcoming payment deadlines. The situation is intricate, with possible legal actions looming if payments are missed, particularly the significant $2 billion due on July 1st.

What is the significance of the Government Development Bank (GDB) in Puerto Rico's financial dealings?

• It has been the main entity for structuring municipal bond deals.

• It is responsible for managing Puerto Rico's tourism industry.

• It is a private bank with no government affiliation.

• It is a new bank established for emergency measures.

What is the main focus of the ongoing meetings in Puerto Rico and Washington?

• To plan a new tourism strategy for Puerto Rico.

• To negotiate a workout for the May 1st payment.

• To discuss the construction of a new government building.

• To organize a cultural festival in San Juan.

What is the potential outcome if Puerto Rico fails to make the full payment by the May 1st deadline?

• The creditors will forgive the debt.

• The government will declare bankruptcy.

• There could be lawsuits from hedge funds.

• The US government will take over Puerto Rico.

What is the significance of the July 1st payment deadline for Puerto Rico?

• It involves a small payment that is not constitutionally guaranteed.

• It is a deadline for a new tourism project.

• It includes a $2 billion payment, with $800 million as general obligation debt.

• It is a minor deadline with no major consequences.

What could happen if Puerto Rico defaults on the July 1st payment?

• Major lawsuits are anticipated.

• The US will provide a bailout without conditions.

• The debt will be automatically forgiven.

• The payment will be postponed indefinitely.