Hurricane-Torn Puerto Rico Says It Can’t Pay Any of Its Debts for 5 Years
Hurricane Maria made Puerto Rico’s already grave financial situation so much worse, the island’s leaders acknowledged late Wednesday,
that they will not be able to pay down any portion of their more than $70 billion debt over the next five years.
By then, he said, the cumulative effect of tough economic austerity measures will help the island’s government achieve
a balanced budget, as required by the federal oversight board that controls Puerto Rico’s troubled finances.
He added that the hurricane’s “social impact was significant, because of the exodus
and population decrease we’ve had in Puerto Rico, and expect to have in the future.”
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Just before the hurricane, Puerto Rico had made plans to pay creditors a total of $3.6 billion through 2022.
Now, Puerto Rico expects its budget to be $2 billion to $3 billion in the red, Gov.
But that plan had to be reworked in light of Maria’s vast devastation, which prompted tens
of thousands of Puerto Ricans to flee the island amid job layoffs and power blackouts.