At Last, Puerto Rico Declares Bankruptcy – Will It Be Resolved?
By erlymags ( @cely / @lovern )
It was in 2015 that the government of Puerto Rico could not anymore pay its debts and this declaration shocks the world. I think three are others that declared bankruptcy in the past years. In May 3, 2017, the government finally declared the island’s bankruptcy. This will be one of the biggest bankruptcy issues in America and its history. PR government told media that its debt reached to the total of seventy four (74bn) billion dollars. This debt is equivalent to one hundred per cent of the GNP. Rumors spread that politics might be the cause of bankruptcy of Puerto Rico.
This island might have made some financial spending without control of the budget department and its businesses might have not sent the turnovers that may evade the total loss of this country’s economy. What happens to their people? Saudi Arabia also suffers bankruptcy due to war in Syria and their source of economy has strong rivals, their gas and gasoline thereby declining the total GNP of this Saudi. So many overseas workers suffer poverty and hunger for many months now they have no salary and they cannot go home, no money and their families are so desperate.
In the case of Puerto Rico, its utilities are also declared on bankruptcy mood. The Washington appointee was tasked to assess the cause of bankruptcy and negotiations were made and some proceedings were made to reach the highest deal to resolve this economic declination. If negotiations will fail there should be another remedy to solve this case. Maybe the residents there failed to pay their tax regularly, the shareholders, bondholders might have withdrawn their shares so business operations stopped and the more PR cannot gain even few dollars.
For the main time, the government tries to balance the budget good for three years. The people will live in austerity and many might leave their place to seek jobs abroad while waiting and hoping for their country to stand string financially. Affected will be their medical program, transportation, and may force some firms to close temporarily. They might have enough budgets in 2020. Since residents of PR are Americans, most probably they will leave their place leaving behind their debt.
Through the help of Washington, Puerto Rico may rise again. This small island can sought help to the American government , but no other means, to borrow some for a capital and debt might soar again or could resolve if , find some gains.
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Their people may live in austerity. The workers may have their salaries adjusted. How bad if it happens to my country, I hope not for our president is so strong and bright.
I am not the least bit worried about Puerto Rico. It's a part of the United States. Washington won't let that little piece of paradise drown!! WE OWN IT!! :)
@Treathyl FOX, You are right, they just reduce their spending and debts shall be paid by borrowers.At least this island learned a lesson not to spend beyond their capacity and to at least avoid releases of loans to people for not all are good payers the dame way to a bank those bank borrowers if do not pay religiously , time comes the bank will declare bankruptcy.
Their government can always think of alternative ways to gain good financial standing again. How about their public services, will it also be affected? It's such a bad situation.
@acelawrites, yes friend their entire place is on bankruptcy mood.But Washington assured helo coming to this island.One main reason is debtors in PR do not pay the government; hence they suffer a great loss this time.