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Post by Logan on Jun 3, 2016 20:39:16 GMT -6
A commission created to audit Puerto Rico’s debt is questioning the legality of government-issued bonds in a report released Thursday, saying the struggling commonwealth might not be responsible for paying a portion of the money owed. The report comes as the U.S. Congress is debating how best to help Puerto Rico as it struggles to restructure $70 billion in public debt. The island is widely expected to default on a $2 billion payment due July 1. The commission, whose 17 members were in part appointed by Puerto Rico legislators, found in its pre-audit report that millions of dollars of debt might have been issued in violation of the island’s Constitution. They say that is significant because previous court rulings have found that some U.S. municipal agencies were not responsible for paying debt if it was illegally issued. The 44-page report states that Puerto Rico has borrowed more than $30 billion to finance deficits since as early as 1979, though its constitution prohibits it from doing so. Read more: www.sanjuanweeklypr.com/pdf/Jun-3-16/local.pdf (page 7 of 9)
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