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Alejandro García Padilla of Puerto Rico said Sunday that he had ordered a debt moratorium, blocking a 2 million payment due on Monday.The missed payment is the biggest yet in a continuing series of defaults by the struggling United States territory, and a warning that Puerto Rico will probably default on even larger and more consequential payments due on July 1, unless Congress enacts rescue legislation before then.Its creditors include many local credit unions on the island, which late last week agreed in effect to roll their debt forward for another year.
The controversy is over the contract awarded to the company that would serve as project manager and in charge of coordinating the process of publicizing the program, evaluating and approving or denying applications, and then coordinating the construction work.Five months after back-to-back hurricanes decimated Puerto Rico’s already-struggling infrastructure, the island’s governor, the MIT-educated Ricardo Rosselló, told a crowd at a forum in New York this week that Puerto Rico is officially “Open for Business.”There is no doubt that Puerto Rico has a long, hard slog ahead of it. Now, as it is struggling to rebuild, hundreds of thousands of residents are leaving for the mainland, and the bankrupt U. Despite the uphill battle, the attitude at this week’s forum, called “Pathway to the Future,” was optimistic, as attendees expressed their hopes that the private sector could help Puerto Rico rebuild.“Challenging times create enormous opportunities,” Rosselló said in his keynote address. If they’re not—or if you’re feeling particularly Gordon Gekko about it all—keep in mind the words of noted rich person Baron Rothschild: “The time to buy is when there’s blood in the streets.”Here are some (better) reasons to do business in Puerto Rico right now: If you’re not looking to do business in Puerto Rico but still want to help, follow the advice of Manuel Laboy, secretary of the Department of Economic Development and Commerce: “You want to help Puerto Rico?SAN JUAN – As the enrollment deadline approaches to enroll in the “Tu Hogar Renace” home-repair program for those affected by Hurricane Maria, the Court of Appeals received Wednesday a document opposing an order issued last week that allows Adjusters International (AI) to continue running the Housing Department program.In an interview with Caribbean Business, Vahid Ownjazayeri–vice president of AECOM, which was the competing bidder that Housing’s Bid Review Board said should have been awarded the contract–did not want to speculate about the possibility that by the time the controversy is resolved, the project will already be in an advanced phase, if not completed. 23 is the deadline for homeowners to enroll in the program, CB learned that Housing requested an extension period from the Federal Emergency Management Agency (FEMA) that had not yet been granted.