Puerto Rico can’t restructure its debt, and now it’s really in trouble
Fortune - 06/15/2016
The high court’s ruling signals that Puerto Rico is out of practical options and has little alternative but to await for Washington’s fiscally castigating hammer to fall. Budgetary retribution is expected to come in the form of a federally appointed control board empowered to bypass the budgetary powers of the island’s elected governor and legislature. For the moment, there appears to be no light at the end of the tunnel. Such a stark assessment may seem overly dooming. But in theory, there are always options. After all, couldn’t Puerto Rico simply circumvent the Supreme Court by threatening to leave the U.S. just as Greece has threatened to depart the Eurozone? It’s an interesting scenario, but ultimately unrealistic given it’s an issue at the heart of the Puerto Rico crisis: the island’s status.