The Chicago Public Schools will make a $676 million payment to the Chicago Teachers Pension Fund due Thursday even though that massive payment will leave the nearly bankrupt school system with just $24 million in the bank.
The Illinois secretary of state suspended mailing license-plate-renewal reminders as of October 2015 to save $450,000 a month during the state’s budget crisis; as a result, the state of Illinois has received a $5.24 million windfall in fees for late license-plate renewals during the first five and a half months of 2016.
Venezuela’s oil output, already the lowest since 2009, is set to slide further this year as contractors scale back drilling after the cash-strapped country fell more than $1 billion behind in payments.
“On 1 July – only four days from now – the crisis in Puerto Rico will ratchet up to an even higher level. Puerto Rico has $2bn in debt payments coming due that day, including payments on constitutionally prioritized debt on which Puerto Rico has not previously defaulted,” Lew wrote.
Even though the state’s economy appears to be in good shape, tax revenue for the fiscal year that starts July 1 is expected to be $650 million to $950 million less than anticipated. That’s $200 million less revenue than the administration projected earlier in June, when it downgraded a more exuberant fiscal projection from January.
The proposed highway borrowing, backed by a higher gasoline tax, is atop the $16.4 billion debt outstanding in 2016 on past Transportation Trust Fund projects, contributing to the state’s overall $154 billion in debt. In the next fiscal year alone, New Jersey must come up with $1.23 billion to retire old highway debt.
With Brexit, or the U.K.’s vote to leave the European Union, and Korea’s corporate restructuring expected to severely affect the country’s jobs, exports and consumption, Finance Minister Yoo Il-ho stressed that time cannot be wasted in implementing its fiscal stimulus, calling for rapid approval of its budget proposal.
Outgoing RBI Governor Raghuram Rajan had made cleaning up banks a priority during his nearly three-year tenure given the sector is saddled with $120 billion of sour loans, which is constraining new lending and corporate investments.
The rally in Japan pushed yields on the nation’s longest debt, the 40-year bond, to 0.065 percent. Australia’s and South Korea’s 10-year yields dropped to unprecedented levels.
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."