What have you always wondered about the economy? Tell us
Stranded — Puerto Rico in debt

This Puerto Rico default is different

Andy Uhler Apr 29, 2016
HTML EMBED:
COPY
Stranded — Puerto Rico in debt

This Puerto Rico default is different

Andy Uhler Apr 29, 2016
HTML EMBED:
COPY

Barring an economic miracle, Puerto Rico is going to default on a more than $400 million debt payment on Monday. The implications could be pretty far-reaching because it would be defaulting on some bonds that are guaranteed by the territory’s constitution. 

The government’s still running, officially, but everyday Puerto Ricans are already suffering, said Edwin Melendez, director of the Center for Puerto Rican Studies at Hunter College in New York.

“The math is very simple — you have declining revenues,” he said. “You have a fixed-debt obligation, so the only thing to do is to cut services.”

Puerto Rico owes payments of $2 billion more on July 1.

Click the audio player above to listen to the full story.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.