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A Puerto Rico Primer: Why the Debt Problem Is Our Problem
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A Puerto Rico Primer: Why the Debt Problem Is Our Problem

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Relief for debt-burdened Puerto Rico could be on its way – members of the U.S. House of Representatives this week announced that they have crafted a bipartisan agreement on legislation that would allow the island to essentially declare bankruptcy and get relief from the more than billion the U.S. territory owes bondholders. Under the deal, Puerto Rico’s creditors would receive less than 100% of what they are owed, but it would also mean they wouldn’t have to enter into potentially costly litigation to try to get their money. The House is expected to vote on the legislation in June. The deal would also come with the stipulation that a control board appointed by Congress and the President will oversee some of the debt restructuring. Puerto Rico would also have to provide the control board with budgets and a plan to achieve fiscal responsibility, The Associated Press reported .…

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