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> there’s no bankruptcy regime for sovereign nations (with the possible exception of PROMESA for Puerto Rico if you squint but that’s probably the exception tha
by dragonwriter 1y ago
> there’s no bankruptcy regime for sovereign nations (with the possible exception of PROMESA for Puerto Rico if you squint but that’s probably the exception that proves the rule).
Puerto Rico is not sovereign (either in the international sense, or even in the more limited US-specific legal sense that US states are), it is a dependent territory of the United States. PROMESA thus is no more, and aeguably less, of an exception than federal Chapter 9 municipal bankruptcy (which applies to agencies, instrumentalities, and subdivisions of states, though not to states as a whole.)
- nocoiner 1y agoRight, the distinction between Puerto Rico’s status …. whatever it is (yeah, yeah, organized unincorporated possession …. whatever that is) and U.S. states led me to surmise that Puerto Rico is actually slightly more sovereign than a U.S. state particularly in the context of insolvency, since it was granted powers that states lack under Title 11, and does have certain features of self-governance that states lack via the feds. But that was an off-the-cuff comment on my part, and I find your argument compelling.