it [hurricane Maria] ripped through inlands leaving a trail of devastation and death
Los Angeles-Long Beach, CA (PRWEB) October 25, 2017
The national debt crisis of Puerto Rico was already in a deep hole to climb out of as explained by National Debt Relief. Hurricane Maria only made it a lot worse. The article titled “How Hurricane Maria Exacerbated Puerto Rico’s Debt Crisis” released October 24, 2017 shares how the hurricane made life tougher for Puerto Ricans on an economic scale.
The article starts off by pointing out the devastation that Hurricane Maria brought to the country. As it made landfall on September 20, 2017, it ripped through inlands leaving a trail of devastation and death. As it left 50 families without a loved one, it also displaced countless others. One of the most significant effects it had was laying the nation’s power grid to waste.
Rough estimates put the damage to about $30 billion. What makes this unique is the current economic situation in the country. If compared to Hurricanes Harvey in Texas and Hurricane Irma in Florida - Hurricane Maria is a lot tamer. However, economic factors makes the situation unique.
The article explains that Puerto Rico is already in the middle of paying down $120 billion national debt. On top of that, the Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act or PROMESA, This basically started the bankruptcy proceedings for the country. Something that was unthinkable when they became an unincorporated US territory.
This meant that they can put out tax-free bonds in order to raise money. This became a favorite of investors simply because states and territories in the United States could not declare bankruptcy. These two makes Puerto Rican debt an enticing investment. However, the PROMESA changed all that. And with the economic devastation by Hurricane Maria, Puerto Rico finds itself in a tough situation.
To read the full article, click https://www.nationaldebtrelief.com/puerto-ricos-debt-crisis/