4 ms·
Cities and states have access to debt restructuring methods (per this article), which PR does not. http://www.cnbc.com/2015/12/01/crunch-time-for-puerto-rico-d
by pboutros 9y ago
Cities and states have access to debt restructuring methods (per this article), which PR does not.
http://www.cnbc.com/2015/12/01/crunch-time-for-puerto-rico-debt-crisis.html http://www.cnbc.com/2015/12/01/crunch-time-for-puerto-rico-d...
- desdiv 9y agoStates do not have access to chapter 9 bankruptcy. If Puerto Rico were a state then it would not have the bankruptcy protections that it currently enjoys right now. Things would be much much worst for them in that case.
- adrianratnapala 9y agoI think the point is that the states, being states, are in the same situation as the federal government is. They can tell creditors to go *k themselves. And then both sides get to bear the consequences. In truth, something similar is true for local governments as well, in practice.