As Puerto Rico Moves On, Another U.S. Territory Crisis Arises
- Virgin Islands faces similar fiscal challenges as neighbor
- U.S. board moving closer to restructuring Puerto Rico’s debt
Charlotte Amalie, St. Thomas, US Virgin Islands
Photographer: Diane Macdonald/Getty ImagesThis article is for subscribers only.
Just as a federal control board moves to steady the ship in Puerto Rico, another U.S. territory appears in need of a lifeline, too.
The U.S. Virgin Islands is grappling with some of the same forces that pushed its closest American neighbor into a cascading series of defaults. The island’s bonds were cut to junk by S&P Global Ratings, which is mulling another downgrade over the growing fiscal distress in the region. Meanwhile, Puerto Rico is moving closer to restructuring its $70 billion debt after the U.S. board overseeing its finances issued a framework to pull the commonwealth out of crisis and resumed talks with creditors.