Puerto Rico faces biggest municipal debt restructuring in US history after Justice approves its plan

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  • BBC News World

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In the years leading up to 2017, Puerto Rico accumulated unbearable debt when it filed for bankruptcy.

Years of debt accumulation, catastrophic hurricanes, political turmoil and a long epidemic are just some of the challenges facing Puerto Rico when it receives US court approval to restructure its debt.

Federal Judge Laura Taylor Sweeney’s decision to give the green light to the island’s plan to end bankruptcy will end almost five years of litigation and make it easier to return to the capital markets.

Puerto Rico accumulated unbearable debt in the years leading up to 2017, declared bankruptcy and began the process of restructuring its multi-million dollar debt of more than $ 70 billion.

At the time, the island was in the throes of a severe economic crisis. It has a poverty rate of 45%, an unemployment rate of 12% – twice the US average – and its population has largely migrated.

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