Puerto Rico Warns More Defaults Are Coming

Puerto Rico faces a severe debt crisis with $70 billion in liabilities and an inability to use bankruptcy for restructuring. The US Congress is debating a bill to allow debt restructuring and establish a federal oversight board. Historical economic changes, such as the removal of tax breaks, have worsened the situation. Political debates focus on the need for a control board and bankruptcy access, with differing views on the best approach to resolve the crisis.

What is the total amount of debt that Puerto Rico is struggling with?

• $50 billion

• $70 billion

• $150 billion

• $100 billion

What significant change affected Puerto Rico's economy after 2006?

• Phasing out of special tax breaks

• Introduction of new tax breaks

• Rise in employment rates

• Increase in population

What is one of the proposed solutions by Republican lawmakers to address Puerto Rico's financial crisis?

• Increase in sales tax

• Establishment of a Control Board

• Reduction in public spending

• Introduction of new bonds

What is the stance of the Obama administration regarding Puerto Rico's financial crisis?

• Complete independence for Puerto Rico

• Federal oversight with a bankruptcy process

• Immediate debt forgiveness

• No intervention from the federal government

Why do bond investors and insurers oppose the proposed solutions for Puerto Rico?

• They want more control over the island's economy

• They fear it will lead to more debt

• They believe it will increase their profits

• They are concerned about potential losses