With Eye on Puerto Rico, Guam Says No to Territorial Bankruptcy
- Guam, American Samoa borrow amid talk of extending bankruptcy
- `Guam has no need nor desire' for Chapter 9, governor says
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Puerto Rico has always gotten the most attention among the U.S. territories. It’s the most-populous, most-indebted, most-proximate to the mainland and most-vocal in pressing the case for bankruptcy.
Now, officials from the other islands are speaking up as they seek to borrow. In Guam, which issued $143 million of tax-free water bonds on Tuesday, they say borrowing costs could swell if Congress extends Chapter 9 bankruptcy protection to U.S. territories as a way for Puerto Rico to reduce its $70 billion of debt. It’s an idea supported by the Obama administration and Alejandro Garcia Padilla, the commonwealth’s governor.