August 1, 2015 10:53 clock

Puerto Rico state bankruptcy

Street scene in Puerto Rico’s capital San Juan | © Joe Raedle / Getty Images

The highly indebted Commonwealth of Puerto Rico is obviously before insolvency. At the weekend the country was unable to repay a bond due in value of 58 million dollars. This was confirmed by the Chief of Staff of the Governor, Victor Suárez.

The government of the island, which is one of the outer regions of the United States had signaled in recent weeks that they would not be able to raise the money. Suárez believes that the country is thus not formally insolvent. The rating agencies Moody’s and Standard & amp; Poor’s, however, had announced very well to evaluate the process as a state bankruptcy.

Governor Alejandro García Padilla had declared in June, to the surprise of investors, the territory will its sovereign debt in the amount of $ 72 billion can not settle and need a remortgage. According to Suárez the government of US foreign territory goes in November out of money, should not receive the support of the island state. Since then, the country negotiated with its creditors on a solution.

The social situation in the country is precarious: Of the 3.6 million inhabitants are already 45 per cent live below the poverty line. According to the New York Times , the debt per capita in Puerto Rico are now the highest in the United States.