A plan has been approved to rescue Puerto Rico from bankruptcy

Puerto Rico – A group of Caribbean islands that are part of the United States “Unconnected territory”- It has reached an agreement to restructure a large portion of its massive public debt, Was forced to become the first U.S. state to declare bankruptcy in 2017, meaning debtors were unable to repay. The deal, approved by a US federal judge, calls for Puerto Rico to reduce its debt to $ 7.4 billion, up from $ 30 billion. The local government will start repaying its debtors, which it has not done for about five years.

In 2017 Puerto Rico announced that it could not repay its debtors. At the time, it had $ 70 billion in government bonds and $ 50 billion in unpaid pensions for its government employees.

However, the internal situation remains very important. The economy is in serious trouble and is actually under the guidance of a panel of experts set up by the US Congress, which locals call the “Junta.” Various small but still serious bankruptcies such as electrical service company are still unresolved. Many fear that if the government starts repaying its debts now, it will be forced to cut back on social services and the already tight welfare state.

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