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 actions has the government of Puerto Rico taken to manage its debt obligations?

How has the government of Puerto Rico been financing its general obligations?

What potential impacts could the default of the Government Development Bank have on investors?

What is the significance of the $2 billion payment due in July for Puerto Rico?

What challenges do US lawmakers face in resolving Puerto Rico's financial crisis?