Puerto Ricos government recently declared that the country will seek bankruptcy under Title III of Promesa, a federal law enacted by the US Congress to deal with Puerto Ricos debt crisis. The decision triggers the beginning of a debt restructuring process, the largest ever registered in the municipal bond market of the US.
It was a sensible move. The country does not have the means to pay its debt. It needs to restore the sustainability of its debt position as a pre-condition for any plan for economic recovery, and the only way for that is through a restructuring process.
Not declaring bankruptcy would have exposed Puerto Rico to massive litigation that would have not boded well for the island. At least 22 lawsuits had already been …
Read the full article at: https://www.theguardian.com/commentisfree/2017/may/08/puerto-ricos-debt-crisis-greece