Puerto Rico Hopes to Gather Funds to Pay Debts

Puerto Rico Hopes to Gather Funds to Pay Debts

On Monday, a government official said that Puerto Rico thinks that it will be able to gather the money that is required to make a payment that is due January on its general-obligation bonds.

In San Juan, Victor Suarez, the chief of staff for Governor Alejandro Garcia Padilla said that the commonwealth island intends to clear its debt bills till the time it has enough funds for the cause. He added that, last week the Caribbean island borrowed $400 million from some government funds and is making an effort to raise additional $400 million in order to fund the operations of the government after November.

In June, Puerto Rico's Governor Garcia Padilla said that the commonwealth will not be able to repay its debts and he would try to look for some more time so that the island could restore its finances. According to the officials they intend to draft a reorganization plan by September 1.

The debt crisis of Puerto Rico is not new and has been developing for years as it borrowed money to plaster the gaps in budget. The island's administration has deferred tax rebates and also supplier payments just to preserve funds for health and safety programs meant for the residents.