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| Storms complicate Puerto Rico's debt problems | Storms complicate Puerto Rico's debt problems |
| (about 9 hours later) | |
| Puerto Rico's more than $70bn in debt is casting a shadow over recovery efforts on the Caribbean island, which was badly destroyed by Hurricane Maria. | Puerto Rico's more than $70bn in debt is casting a shadow over recovery efforts on the Caribbean island, which was badly destroyed by Hurricane Maria. |
| Puerto Rican Governor Ricardo Rosello, who is seeking federal funds, warned of a "massive exodus" without aid. | Puerto Rican Governor Ricardo Rosello, who is seeking federal funds, warned of a "massive exodus" without aid. |
| US President Donald Trump wrote on Twitter on Monday night that the island was in "deep trouble". | US President Donald Trump wrote on Twitter on Monday night that the island was in "deep trouble". |
| He added that its debts, "sadly, must be dealt with". | He added that its debts, "sadly, must be dealt with". |
| In May, Puerto Rico declared a form of bankruptcy, seeking to restructure more than $70bn (£52bn) in debt. | In May, Puerto Rico declared a form of bankruptcy, seeking to restructure more than $70bn (£52bn) in debt. |
| Analysts said a chief risk is that the storm will accelerate the population decline on the island, exacerbating its economic problems and hurting its ability to repay. | Analysts said a chief risk is that the storm will accelerate the population decline on the island, exacerbating its economic problems and hurting its ability to repay. |
| Puerto Rico's population has already fallen by more than 8% since 2010 to about 3.4 million. | Puerto Rico's population has already fallen by more than 8% since 2010 to about 3.4 million. |
| "Really, the fundamental thing is if people leave the island, will they be willing to come back," said Cate Long, founder of the research firm Puerto Rico Clearinghouse. | "Really, the fundamental thing is if people leave the island, will they be willing to come back," said Cate Long, founder of the research firm Puerto Rico Clearinghouse. |
| Trump tweet | Trump tweet |
| Puerto Rico is facing the collapse of its electricity and communications network as it evacuates flooded families and examines damaged infrastructure. A major dam is at risk of failure. | |
| Insured losses across the Caribbean are already estimated to range from $40bn to $85bn, with about 85% of the damage found in Puerto Rico, according to disaster modelling firm AIR Worldwide. | Insured losses across the Caribbean are already estimated to range from $40bn to $85bn, with about 85% of the damage found in Puerto Rico, according to disaster modelling firm AIR Worldwide. |
| President Trump said the priorities for federal relief were immediate needs for food, water and medical assistance. | President Trump said the priorities for federal relief were immediate needs for food, water and medical assistance. |
| In his tweets, he did not address longer-term rebuilding plans, but he contrasted its situation with Texas and Florida, which have also been hit by major storms this season. | In his tweets, he did not address longer-term rebuilding plans, but he contrasted its situation with Texas and Florida, which have also been hit by major storms this season. |
| "Texas and Florida are doing great but Puerto Rico, which was already suffering from broken infrastructure & massive debt, is in deep trouble," he wrote. | "Texas and Florida are doing great but Puerto Rico, which was already suffering from broken infrastructure & massive debt, is in deep trouble," he wrote. |
| "Much of the island was destroyed, with billions of dollars ... owed to Wall Street and the banks which, sadly, must be dealt with." | "Much of the island was destroyed, with billions of dollars ... owed to Wall Street and the banks which, sadly, must be dealt with." |
| The federal panel that oversees Puerto Rico's finances said it would work to speed recovery funds. | The federal panel that oversees Puerto Rico's finances said it would work to speed recovery funds. |
| But the island's debt means that it cannot borrow money for the emergency on its own. | But the island's debt means that it cannot borrow money for the emergency on its own. |
| Some Democrats have said relief is coming too slowly. | Some Democrats have said relief is coming too slowly. |
| "The situation is desperate. Puerto Rico has taken a serious punch to the gut and they need our help," Sen Chuck Schumer said in a statement. | "The situation is desperate. Puerto Rico has taken a serious punch to the gut and they need our help," Sen Chuck Schumer said in a statement. |
| 'Completely different set of circumstances' | 'Completely different set of circumstances' |
| Credit ratings agency Moody's issued a report on Monday examining the impact of the disaster on the debt. It noted that the federal response was key. | Credit ratings agency Moody's issued a report on Monday examining the impact of the disaster on the debt. It noted that the federal response was key. |
| "Severe damage to infrastructure and private property that is not offset through federal relief efforts will signal reduced economic capacity," the report said. | "Severe damage to infrastructure and private property that is not offset through federal relief efforts will signal reduced economic capacity," the report said. |
| The island's status as a commonwealth and not a state means it has fewer advocates in Congress, which could complicate funding efforts, said Ted Hampton, a Moody's analyst. | The island's status as a commonwealth and not a state means it has fewer advocates in Congress, which could complicate funding efforts, said Ted Hampton, a Moody's analyst. |
| The price of Puerto Rico debt declined on Monday, as traders factored in possible losses. | The price of Puerto Rico debt declined on Monday, as traders factored in possible losses. |
| But Mr Hampton said the situation was still evolving and it was too soon to say how the situation will develop. | But Mr Hampton said the situation was still evolving and it was too soon to say how the situation will develop. |
| "There is going to be a pause and disruption near-term, but we've often seen by the same token that after devastating hurricanes the influx of federal aid and other funds... can really spur an economy - so a year from now, or maybe two years from now, who knows?" he said. | "There is going to be a pause and disruption near-term, but we've often seen by the same token that after devastating hurricanes the influx of federal aid and other funds... can really spur an economy - so a year from now, or maybe two years from now, who knows?" he said. |
| Puerto Rico had been working on a financial plan with cuts that would satisfy the federal oversight panel. | Puerto Rico had been working on a financial plan with cuts that would satisfy the federal oversight panel. |
| But Governor Rosello told broadcaster CNN that the hurricanes were "a game changer" for those discussions. | But Governor Rosello told broadcaster CNN that the hurricanes were "a game changer" for those discussions. |
| "This is a completely different set of circumstances," he said. | "This is a completely different set of circumstances," he said. |