PR PUBLIC FINANCE CORP DEFAULTS
A Puerto Rico agency is poised to default Monday, initiating a clash with cre-
ditors as the struggling commonwealth seeks to renegotiate its $72 billion debt
load. The government doesn’t have the money for the $58 million of principal
and interest that was due Aug. 1 on Public Finance Corp. bonds, Victor Suarez,
the chief of staff for Governor Alejandro Garcia Padilla, said during a press con-
ference July 31 in San Juan. The financing corporation’s obligation is part of $
597 million of debt-service payments that the common-wealth and its agencies
owe this month. It would mark the first payment default by a Puerto Rico entity.
O'MALLEY SPEAKS ON PR CRISIS
From Caribbean Business:
Former Maryland Gov. Martin O'Malley, a Democratic presidential candidate,
arrived Friday night in Puerto Rico, making it his fourth time on the island in the
past two years[...]In Puerto Rico, he intends to reiterate his position regarding the
island’s exclusion from the federal bankruptcy code’s chapter 9 protections and
local Medicare payment rates. The presidential candidate reportedly supports a-
llowing Puerto Rico to declare bankruptcy and backs the island’s call for federal
healthcare reimbursement-rate parity with the U.S. mainland. O'Malley told the
Associated Press that Puerto Rico should receive the same benefits as the U.S.
He said that Wall Street, forces on the mainland and a Republican Congress were
treating the island unfairly.
TOWNS IN EXTREME DROUGHT TRIPLE
From The San Juan Daily Star:
Natural and Environmental Resources (DNER) Secretary Carmen Guerrero Pé-
rez said Thursday the United States Drought Monitor increased the number of
island municipalities under the extreme drought classification to 20 as 2.5 mi-
llion people in 74 towns are living under diff erent drought categories...The 20
Puerto Rico municipalities under extreme drought are now Arroyo, Caguas, Ca-
nóvanas, Carolina, Cayey, Cidra, Fajardo, Guayama, Guarabo, Juncos, Las Pie-
dras, Luquillo, Maunabo, Naguabo, Patillas, San Lorenzo, Río Grande, Salinas,
Trujillo Alto and Yabucoa.
WATER RESERVOIR LEVELS FOR TODAY
From AAA. Click graph to enlarge.
UPDATE: 48-hour rationing will start for customers of the La Plata reservoir
starting this coming Wednesday, August 5th.