Puerto Rico approves sale of up to $3.5B in bonds

By The Associated Press | Posted - Mar. 4, 2014 at 8:21 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SAN JUAN, Puerto Rico (AP) — Puerto Rico's governor has signed a bill that authorizes the sale of up to $3.5 billion in bonds amid recent downgrades to the U.S. territory's credit rating.

The announcement Tuesday by Gov. Alejandro Garcia Padilla comes as the U.S. territory prepares to re-enter the bond market this month to help pay off $70 billion in public debt.

The bill also allows U.S. investors to sue the island's government if needed in Puerto Rico and New York courts. An earlier version of the bill would have allowed investors to sue Puerto Rico in any U.S. court.

Garcia said the measure is needed to strengthen Puerto Rico's economy as the island enters its eighth year in recession. The money will in part be used to repay and refinance old debt.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast