ANOTHER OPINION AGREEING WITH MINE THAT CHANGING THE RULES ON REPAYMENT OF PUERTO RICO’S BONDS WOULD BE BAD
On the Cato Institute blog, a writer makes the same point I did last week, then again earlier this week: changing the rules on payment priorities among Puerto Rico’s creditors, by taking away the priority that was promised to the holders of bonds, will make borrowing more expensive for other governments in the future, because the cost of such borrowing will have to factor in the added risk that the government will change the rules after the bonds are sold. That’s not how it is supposed to work.
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