many observers are wondering if Illinois could become the first US state to declare bankruptcy (link). Advertisements
A court ruling ordering the state of Illinois to find the money to paid Medicaid providers hit bond interest rates and ratings as the state struggles to pay its debts (link).
Moody’s Investors Service cut its rating on China’s debt. There are concerns that the nation’s leadership will be able to rein in leverage while maintaining the pace of economic growth (link).
In an effort to cut the state budget without layoffs Connecticut Governor Dannel Malloy proposed a wage freeze along with a decrease in state contributions for healthcare and some other benefits. Due to budget issues the state’s credit rating was recently downgraded (link).
Despite passing more public spending cutbacks that lead to national demonstrations and riots, Greek efforts to secure another round of bailout funding to avoid bankruptcy has failed. There is still a possibility of securing the funds in June. Should they not be able to the nation will likely declare bankruptcy in July (link).
The highway authority and the largest public pension in Puerto Rico have joined in declaring bankruptcy protection (link).
The Chicago school systems plans to borrow up to $389 Million dollars in order to be able to remain open for the remainder of the school year (link).