The Debate Over Puerto Rico’s Debt

By Worldview
A homeless man stands in front of a closed down fast food restaurant in the colonial district of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015. As Puerto Rico’s economy continues to decline a list of cost-cutting measures proposed by a group of hedge funds that holds $5.2 billion of Puerto Rico’s debt has riled islanders: laying off teachers; cutting Medicaid benefits; and reducing subsidies to the main public university.
A homeless man stands in front of a closed down fast food restaurant in the colonial district of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015. As Puerto Rico's economy continues to decline a list of cost-cutting measures proposed by a group of hedge funds that holds $5.2 billion of Puerto Rico’s debt has riled islanders: laying off teachers; cutting Medicaid benefits; and reducing subsidies to the main public university. Ricardo Arduengo / AP Photo
A homeless man stands in front of a closed down fast food restaurant in the colonial district of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015. As Puerto Rico’s economy continues to decline a list of cost-cutting measures proposed by a group of hedge funds that holds $5.2 billion of Puerto Rico’s debt has riled islanders: laying off teachers; cutting Medicaid benefits; and reducing subsidies to the main public university.
A homeless man stands in front of a closed down fast food restaurant in the colonial district of Old San Juan, Puerto Rico, Sunday, Aug. 2, 2015. As Puerto Rico's economy continues to decline a list of cost-cutting measures proposed by a group of hedge funds that holds $5.2 billion of Puerto Rico’s debt has riled islanders: laying off teachers; cutting Medicaid benefits; and reducing subsidies to the main public university. Ricardo Arduengo / AP Photo

The Debate Over Puerto Rico’s Debt

By Worldview
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Puerto Rico has been in a recession for more than a decade - and owes 70 billion to its creditors.

Treasury Secretary Jack Lew says that Puerto Rico is, “for all practical purposes” in default and needs a full restructuring of its debt. As a US territory, Puerto Rico is restricted in its ability to restructure its debt.

Earlier this month some Senate democrats introduced legislation that would allow Puerto Rico to declare bankruptcy in order to restructure its debt. It’s unclear whether the legislation would pass the Republican-controlled Congress.

Now the Supreme Court is involved. We’ll talk about the options on the table with Nelson Denis, author of War Against All Puerto Ricans Revolution and Terror in America’s Colony