The New York Times
Nonpayment on Bonds Would Have Consequences for Puerto Rico
Puerto Rico faces an imminent $58 million payment on its debt, and the financially distressed commonwealth’s government is preparing creditors for the possibility that it won't be able to make the payment. The Puerto Rican government indicated that its moral obligation bonds weren't issued with a legal responsibility to repay creditors, though market participants suggested that nonpayment would have major implications for the commonwealth's ability to issue future bonds of any kind. In an interview with The New York Times, Jim Spiotto discussed the implications of Puerto Rico’s failure to pay its moral obligation debt.
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