Chapter 9

Obama Appoints Puerto Rico Control Board after Bond Default

The Obama administration has picked seven people to serve on a financial control board overseeing the restructuring of the Commonwealth of Puerto Rico’s $70 billion debt burden and $43 billion unfunded pension liability. Under congressional legislation signed after the island

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Puerto Rico Intends to Default Despite U.S. Aid

Despite Congress being ready to pass special legislation to restructure its $70 billion in debt, the Governor of Puerto Rico announced that the U.S. Territory will default on July 1.

Puerto Rico bailout (Kathy Willens / Associated Press)

Conservatives Blast Puerto Rico $33B Debt Forgiveness

Although House Speaker Paul Ryan (R-WI) warned that Congress needs to “bring order to the chaos” in Puerto Rico, conservative House Republicans are giving the cold shoulder to a plan that would let Puerto Rico wipe out $33 billion of its $73 billion debt in bankruptcy.

Puerto Rico bailout (Kathy Willens / Associated Press)