With economy forecast to shrink, Unger faces a difficult task
Monday, June 29, 2015
Sunday, June 28, 2015
Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions. The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment. “The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.”
The ambassador also said that the leaders discussed issues pertaining to energy, and that Brazil was exploring the possibility of setting up a hydro project in Guyana. Brazil is also interesting in assisting Guyana with educational efforts, by implementing a Portuguese program in schools, and transportation efforts, by helping the government pave the road from Linden to Lethem.
Mercosur, ports, energy, trade are among the issues in the agenda that Paraguayan president Horacio Cartes will consider with his counterpart Tabare Vazquez when he makes a one day visit on Thursday to Montevideo, according to the Uruguayan ambassador in Asunción Federico Perazza, ahead of the meeting.