Puerto Rico Must Not Waste Its Second Chance
Restructuring debt is just the first painful step on the road to recovery.
For too long, Puerto Rico has been trapped in political and economic limbo. Politicians have been afraid to make tough decisions. Voters have been reluctant to face reality. Investors have been unwilling to compromise.
Now there is an opportunity to break the logjam. Drastic as it seems, Puerto Rico’s decision to seek the biggest debt restructuring of any U.S. state or local government is wise. It offers the best hope for economic recovery and an orderly resolution of the territory’s more than $70 billion in debt.