Puerto Rico owes creditors around $72
billion, but cannot pay. July 1 will see the commonwealth
default on more than $1 billion of the $2 billion in debt
that’s then due. Some believe the only way the
commonwealth can restructure is US legislative action, in the
form of the PROMESA act.
The commonwealth's crisis was a long time in the
coming. With a struggling economy, and an increasing debt pile
after the global financial crisis, Puerto Rico’s
long and short term outlooks are both dire.
There have been attempts at a fight back. Puerto Rico
introduced its own restructuring statute, although the Supreme
Court rejected it. The commonwealth also tried to negotiate a
settlement with its creditors. That door was also closed. So it
went to Congress for help.
Puerto Rico's last hand? That led to some
hope of relief; a bill designed to help the...