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Significance
The missed payment marks the island’s second default of 2017 after missing payments in January. The federal fiscal control board imposed by the US Congress has given the indebted Puerto Rican government until February 28 to formulate new budget proposals for the next two years and a ten-year fiscal plan. The control board also extended a temporary stay on creditor litigation to May 1.
Impacts
A public health or migration crisis involving Puerto Rico’s US citizens would present the White House with political difficulties.
Holders of bonds from the highly indebted US Virgin Islands will watch congressional action on Puerto Rico closely.
Cuts to employee benefits and tuition increases at the University of Puerto Rico are likely to spark protests.
Keywords:
Puerto Rico,
NA,
United States,
Virgin Islands,
economy,
industry,
politics,
bonds,
constitution,
debt,
education,
employment,
finance,
fiscal,
health,
opposition,
party,
regional,
welfare
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2017
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