Puerto Rico is our Greece bailout.
The US Senate passed a bipartisan relief package for Puerto Rico on Wednesday, sending the legislation to President Barack Obama for approval just days before the island is expected to default on a $2 billion payment to creditors.
Puerto Rico’s debt crisis has crippled the island’s economy and driven much of its population to flee to the continental United States. While the passage of the relief package is definitely a notable accomplishment for Republican lawmakers who are typically viewed as obstructionist, more legislative action will be needed to help the debt-ridden island restructure the remaining $68 billion it owes to creditors. However, Congress cannot solve all of Puerto Rico’s problems. Bold legislation was definitely needed to help the American citizens who through no fault of their own have seen their economy reduced to ruin, but the island’s own government must learn to be more financially responsible in the future.
Because Puerto Rico is classified as a US territory, it cannot declare bankruptcy under federal law.