The New York Times is reporting that federal Treasury officials are taken quiet, but pro-active steps to try and steer Puerto Rico out of the economic mess that it is in. Sigh of relief?
From the DealBook:
The Treasury Department is quietly stepping up its involvement in Puerto Rico, indicating that the island’s financial problems, which have been simmering for years, are reaching a critical point. High-ranking officials have been shuttling between Washington and Puerto Rico, advising commonwealth officials as they try to stabilize the island’s finances.
But it is a quandary with no clear-cut solution and potentially far-reaching effects. Puerto Rico is struggling with far more debt than analysts believe it can repay, and no legal framework exists to reduce the burden. Financially troubled cities and counties in the United States can take shelter in bankruptcy court, but federal law denies that option to United States territories and commonwealths, and attempts to amend the law face an uphill battle.