The Dominion of the United States of America, Puerto Rico, has officially come out of bankruptcy on the 15th, The Associated Press and Bloomberg News reported.
Five years after filing for bankruptcy protection in 2017, the Puerto Rican government will resume repaying its creditors seven years after it defaulted in 2015.
Natalie Jarusco, chairman of the Congressional Puerto Rico Financial Supervisory Commission, told the Associated Press that Puerto Ricos exit from bankruptcy was a significant success.
The US territory of Puerto Rico, located in the Caribbean, went into default in 2015 after it failed to pay $70 billion in debt.
Add to that more than $50 billion in outstanding pension payments, and Puerto Ricos total debt is over $120 billion.
Decades of accumulated corruption, poor management and excessive borrowing have contributed to Puerto Ricos debt crisis, the Associated Press explained.
Puerto Rico self-government tried to find a way to get out of the crisis under the supervision and supervision of the U.S. Federal Commission, but it didnt work out, and in May 2017, two years later, it filed for bankruptcy protection.
Hurricane Maria, which soon hit Puerto Rico, further exacerbated the crisis, and a series of earthquakes and COVID-19 also took hold of the economy.
The breakout comes after a US court in January approved a debt restructuring plan that cuts some of Puerto Ricos debt.
[Photo source: AP = Yonhap News]