Puerto Rico Defaults on $2B Debt

The transcript discusses Puerto Rico's financial crisis, highlighting its inability to pay for essential services and its $2 billion debt. It explores the potential ripple effects of a default and the implications of a bill signed by President Obama, which temporarily prevents investors from suing for payment. The Federal Control Board will eventually address necessary debt restructurings.

What is the primary reason for Puerto Rico's financial default?

• High unemployment rates

• Insufficient funds for essential services

• Natural disasters

• Lack of political support

How much does Puerto Rico and its agencies owe as of today?

• $4 billion

• $3 billion

• $2 billion

• $1 billion

What is the immediate effect of the bill signed by President Obama on investors?

• Investors can sue for payment remedies

• Investors are temporarily unable to sue for payment remedies

• Investors receive immediate payment

• Investors are given shares in Puerto Rico

What is the role of the Federal Control Board in Puerto Rico's financial situation?

• To manage financial restructuring

• To provide loans

• To increase taxes

• To reduce public services

What temporary relief does the bill provide to Puerto Rico?

• Reduction in interest rates

• Increase in federal funding

• Temporary relief from lawsuits

• Reduction in debt