Puerto Rico Declares a Form of Bankruptcy

I am sure President Trump with his extensive experience with bankruptcy, and his many friends owning island property, will be deeply involved in the negotiations and eventual resolution.  From NYT.

The governor of Puerto Rico, Ricardo Rosselló, said he would move the island’s debt crisis into federal bankruptcy court, making it the largest government to seek refuge from its creditors in United States history. Document: Puerto Rico’s Letter on Debt Puerto Rico has roughly $73 billion of bond debt, and nearly $50 billion of unfunded pension obligations to restructure. Breaking News Alerts Sign up to receive an email from The New York Times as soon as important news breaks around the world. The case will not be formally called bankruptcy, since Puerto Rico is barred from using Chapter 9, the usual chapter used by insolvent local governments. It will instead petition for relief under a new federal law for insolvent territorial governments, called Promesa.


About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
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