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Obama Seeks Broad Bankruptcy Power for Puerto Rico in Crisis

  • Administration publishes roadmap to help island with debt
  • U.S. supports independent fiscal oversight for Puerto Rico
Bloomberg business news

Puerto Rico’s New Debt Crisis Plan

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President Barack Obama is pressing for Congress to give Puerto Rico sweeping powers to reduce its $73 billion debt burden through bankruptcy, escalating administration involvement as the Caribbean island’s access to cash dries up.

Puerto Rico would be provided with a form of bankruptcy protection not now available to American territories. Administration officials also called for lawmakers late Wednesday to increase health-care funding for Puerto Rico, extend tax credits to the poor and put independent oversight in place to monitor the government’s budget.