Department warns economic crisis could escalate to a government shutdown whether US doesn’t approve ‘life-saving’ bankruptcy mechanism for the US territoryThe US Treasury Department is warning of a potential government shutdown in Puerto Rico and lengthy litigation whether Congress does not approve a bankruptcy mechanism for the US territory soon.
“The government remains open only because the governor authorized more than $1bn in onerous and unsustainable emergency liquidity actions. Tax refunds have been withheld from citizens. Pension assets,already severely depleted, are being sold to fund government operations. Money committed to one group of creditors is being taken to pay other creditors, and US Treasury counselor Antonio Weiss told Congress on Thursday.
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Source: theguardian.com