Puerto Rico Plans to Default on New Year's Day

Puerto Rico faces a January 1 deadline to make more than $1 billion in debt payments. Puerto Rico's government has ‎sent conflicting messages about its ability to pay, but Puerto Rico's Governor has stated the island will default during its January or May payments. Puerto Rico is shifting funds in order to pay debt in what its Governor calls "fiscal gymnastics." US Treasury Secretary Jack Lew says Puerto Rico is already "effectively in default."