The debt-ridden Island Puerto Rico has opted for value-added tax (VAT) as a measure to enhance revenues for the government. The new VAT structure will come into force starting1 April 2016.
Puerto Rico
U.S. Congress Delayed Work on Puerto Rico Debt Relief Bill, Blaming Obama Administration
The U.S. Congress has delayed work on Puerto Rico debt bill. Originally, the bill was scheduled to be the subject of hearing on Wednesday before receiving final amendments on Thursday. After that, it will be sent for debate on the House.
Supreme Court Dumps Puerto Rico's Seek of Chapter 9 Bankruptcy
Puerto Rico is struggling with a $72 billion debt and is seeking for a Chapter 9 bankruptcy. It is unclear why the said country is excluded and will not be able to take advantage of it to protect it from creditors and restructure its debts. Only Congress can make a bankruptcy law.
Puerto Rico Desperately Needs US Help to Handle Debt
Puerto Rico, the island territory of U.S. is in the crisis due to its surmounting debt. Governor Alejandro Garcia Padilla repeated the island's debt will lead to moratorium.
Puerto Rico in troubled waters, stalls debt payments to provide essential services
Puerto Rico has run into deep economic crisis, with its fiscal agent, the Government Development Bank, running out of reserves to cover even essential services. The government is tilting towards holding on to its debt repayments to sustain the island as a going concern, but their plea to creditors and the Congress to bail them out of the crisis is met with resistance on both fronts.
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The five-year restructuring plan proposed for ailing Caribbean island Puerto Rico has become a center of criticism from economists, who question that who shall benefit from this debt deal. Economists argue that the debt plan overstated the financial requirements of the island.
Puerto Rico is jacking up its sales tax in a bid to address its fiscal problems. This is considered a regressive move that could ultimately hurt the country's bottom line and its countless poor people.
A long-shot bill to give Puerto Rico's ailing public agencies a chance to restructure their massive debts under the section of U.S. bankruptcy law used by cities such as Detroit and Stockton, California, will get a hearing before a key congressional committee, according to two sources familiar with the matter.
Puerto Rico's planned bond deal of up to $2.9 billion will not happen before early 2015, two finance industry sources briefed on the matter said on Monday.
Hedge funds planning to participate in the bond offering of Puerto Rico are asking the commonwealth to raise enough capital to last for two years and give up its sovereign immunity, according to sources interviewed by Bloomberg.
While US and foreign banks do away with risky investments like municipal bonds, hedge funds had taken advantage with the loss of a competitor and increased their positions in such assets, a Barron's report said.
Swiss lender UBS said it will be offering to repurchase some of the shares of its Puerto Rico bond funds. The buyback program came as the commonwealth's debt lost 16% this year.
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