Puerto Rico Announces 46% Debt Cut

Puerto Rico on Monday announced it had made an exchange offer to financial creditors to reduce a $49.2 billion chunk of its debt by about 46 percent, to $26.5 billion.

The plan, the opening salvo in the U.S. Commonwealth’s efforts to resolve its $70 billion debt load, would offer creditors reductions in payouts under a debt exchange, but give them an opportunity to make up the difference through a separate bond issue whose payout would be dependent on the island’s future growth.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza