Puerto Rico’s Governor Alejandro Garcia Padilla had concluded that the island’s $72 billion in public debt is unsustainable, and revealed plans to pursue a broad debt restructuring. Gov. Garcia Padilla is taking guidance on restructuring options from former World Bank and International Monetary Fund officials led by Anne Krueger, a spokeswoman confirmed on Monday. Gov. Garcia Padilla said in a statement released Monday, ‘It is no secret that the Commonwealth has faced fiscal issues over the last decade. However, the report from Dr. Krueger and her team – commissioned at the request of the Commonwealth – for the first time acknowledges the true extent of the problem.’ He concluded, ‘We must make difficult decisions to meet the challenges we now know are ahead, and I intend to do everything in my power to lead us through this time.’ Debt such as Puerto Rico’s general obligation bonds traded down significantly on Monday. The Deal’s Senior Reporter Lisa Allen has the details from New York.
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