{"id":37077,"date":"2016-05-02T08:41:30","date_gmt":"2016-05-02T12:41:30","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=37077"},"modified":"2016-05-02T08:41:30","modified_gmt":"2016-05-02T12:41:30","slug":"puerto-rico-says-will-default-tomorrow-begs-congress-for-help-or-else-crisis-will-get-worse","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=37077","title":{"rendered":"Puerto Rico Says Will Default Tomorrow, Begs Congress For Help &#8220;Or Else Crisis Will Get Worse&#8221;"},"content":{"rendered":"<p><!--more-->ZeroHedge.com<\/p>\n<p><u><strong>Update:<\/strong><\/u> PR Governor Padilla has spoken&#8230;<\/p>\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, <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> investors 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 <strong>crashed to just 20c (disastrously below the 36-cent recovery rate the commonwealth proposed in March)<\/strong>.<br \/>\nIt 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; <\/strong>S&amp;P Global Ratings said April 11.<\/p>\n<blockquote>\n<div class=\"quote_start\"><\/div>\n<div class=\"quote_end\"><\/div>\n<p><strong>No matter which route Puerto Rico takes, credit-rating companies see a default as inevitable. <\/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.<\/p><\/blockquote>\n<p><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> Puerto Rico said its Government Development Bank, which is operating in a state of emergency to preserve its dwindling cash, reached an <strong>agreement with some credit unions to delay $33 million of bond payments<\/strong> as the commonwealth rushes toward a potential historic default.<\/p>\n<blockquote>\n<div class=\"quote_start\"><\/div>\n<div class=\"quote_end\"><\/div>\n<p><strong>The pact only affects a portion of the $422 million that the bank owes on May 1. <\/strong>The GDB will exchange the $33 million in bonds for new debt that will mature May 1, 2017, Governor Alejandro Garcia Padilla\u2019s administration said in a statement Friday. The terms of the agreement are available to other credit unions, called cooperativas, and investors, according to the statement.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u201cApart from this private exchange, GDB continues to negotiate a potential transaction related to an exchange of all of GDB\u2019s bond indebtedness, which would require the participation of all creditors of GDB (including the cooperativas),\u201d<\/strong> the administration said in the statement. \u201cThe private exchange does not affect, or take the place of, those ongoing negotiations.\u201d<\/p><\/blockquote>\n<p>The bank is still negotiating a possible debt exchange on all of its bonds, which would require the participation of all its creditors, according a the statement. The GDB, which structured the island\u2019s debt sales, has $5.1 billion of debt. <strong>The governor\u2019s office said Garcia Padilla will speak to the commonwealth in a televised address Sunday at 5 p.m. New York time.<\/strong><\/p>\n<p>___<br \/>\n<a href=\"http:\/\/www.zerohedge.com\/news\/2016-05-01\/puerto-rico-default-virtually-certain-bond-prices-crash-record-low\">http:\/\/www.zerohedge.com\/news\/2016-05-01\/puerto-rico-default-virtually-certain-bond-prices-crash-record-low<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-37077","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/37077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37077"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/37077\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}