With the passage of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) on Thursday, Puerto Rico has narrowly avoided what was expected to be its largest economic calamity yet. The bill prevents the island from being sued for not paying the nearly $2 billion in bond payments that came due on Fridaya possibility that would have threatened payouts from programs such as pensions and social services and plunged the territory further into turmoil. But while the bill will give the island some reprieve from debtors, and help create a path forward for managing the crisis, it also establishes a system that may cause resentment.
PROMESA sets the following events in motion: the establishment of a seven-p…
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