Puerto Rico Unveils Plan To Reduce Debt

Puerto Rico's debt crisis led to a plan to reduce its liabilities from $35 billion to $12 billion, significantly lowering taxpayer funds spent on debt payments. The territory's financial mismanagement and corruption resulted in a massive municipal bankruptcy. In response, Congress enacted PROMESA, establishing a process for debt restructuring and creating the Financial Oversight and Management Board. The board's new proposal is seen as a crucial step forward, especially after economic decline and natural disasters. A federal judge is expected to confirm the plan in early 2020.

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