Garcia-Padilla

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(via The Last Internationale | Deportees (Woody Guthrie) - YouTube)

Miguel Negrete Alvarez, Francisco Llamas Duran, Santiago Garcia Elizondo, Rosalio Padilla Estrada, Barnabe Lopez Garcia, Ramon Paredes Gonzalez, Tomas Avina de Garcia, Salvador Sandoval Hernandez, Guadalupe Ramirez Lara, Severo Medina Lara, Elias Trujillo Macias, Tomas Padilla Marquez, Luis Lopez Medina, Manuel Calderon Merino, Luis Cuevas Mirando, Martin Razo Navarro, Ignacio Perez Navarro, Roman Ochoa Ochoa, Apololinio Ramirez Placencia, Alberto Carlos Raygoza, Guadalupe Hernandez Rodriguez, Maria Santana Rodriguez, Juan Valenzuela Ruiz, Wenceslao Flores Ruiz, Jose Valdivia Sanchez, Jesus Meza Santos, Baldomero Marcas Torres, Francis C Atkinson, Lillian K Atkinson, Marion H Ewing, Frank E Chaffin

The Puerto Rican debt crisis is having a staggering effect on migration

On Sunday, Gov. Alejandro Garcia Padilla announced Puerto Rico’s Government Development Bank would default on roughly $389 million in payments to bondholders. The island has over $70 billion in total debt and a 12% unemployment rate. But the number of Puerto Ricans coming to the U.S. mainland every day may really make your jaw drop.

nytimes.com
Inside the Billion-Dollar Battle for Puerto Rico’s Future
The impoverished island turned to hedge funds to stave off collapse. Now someone has to pay.
By Jonathan Mahler and Nicholas Confessore

The money poured in by the millions, then by the hundreds of millions, and finally by the billions. Over weak coffee in a conference room in Midtown Manhattan last year, a half-dozen Puerto Rican officials exhaled: Their cash-starved island had persuaded some of the country’s biggest hedge funds to lend them more than $3 billion to keep the government afloat.

There were plenty of reasons for the hedge funds to like the deal: They would be earning, in effect, a 20 percent return. And under the island’s Constitution, Puerto Rico was required to pay back its debt before almost any other bills, whether for retirees’ health care or teachers’ salaries.

But within months, Puerto Rico was saying it had run out of money, and the relationship between the impoverished United States territory and its unlikely saviors fell apart, setting up an extraordinary political and financial fight over Puerto Rico’s future.

fortune.com
Puerto Rico’s Governor Says the Island Will Default on Monday
Puerto Rico's Government Development Bank has a $422 million payment due to creditors that day.

Puerto Rican officials talked tough ahead of a major debt payment due on Monday, with the U.S. territory’s governor predicting default, and chances slipping for a restructuring deal with creditors.

Speaking to reporters on Wednesday, Governor Alejandro Garcia Padilla said “there will be a default on Monday,” adding, “I don’t think there is a deal on the table that avoids a default.”

Puerto Rico’s Government Development Bank, the island’s primary fiscal agent, owes creditors $422 million on Monday, a payment Garcia Padilla has said the bank cannot afford. The looming default is part of a broader economic crisis in the Caribbean haven plagued by $70 billion in total debt, a shrinking population and a 45% poverty rate.