Puerto Rico, a US territory, currently owes about $72 billion to hedge funds, mutual funds and other investors. In June the Governor said Puerto Rico would not be able to repay these debts.
The Obama administration has offered a plan to help Puerto Rico’s economic recovery. Senator Elizabeth Warren does not feel the administration’s plan is ‘creative’ enough. Warren wants to see a Chapter 9 plan, which would benefit Puerto RIcans as much as the big banks were benefited by the US bailout in 2009. Over 300,000 people have left the island in the past ten years to find work elsewhere.
Warren is calling for comprehensive re-structuring.
