Puerto Rico Unveils Plan To Reduce Debt

Puerto Rico's debt crisis led to a plan to reduce its liabilities from $35 billion to $12 billion, significantly lowering taxpayer funds spent on debt payments. The territory's financial mismanagement and corruption resulted in a massive municipal bankruptcy. In response, Congress enacted PROMESA, establishing a process for debt restructuring and creating the Financial Oversight and Management Board. The board's new proposal is seen as a crucial step forward, especially after economic decline and natural disasters. A federal judge is expected to confirm the plan in early 2020.

What was the initial amount of liabilities that Puerto Rico aimed to reduce?

• $9 billion

• $12 billion

• $35 billion

• $60 billion

What percentage of taxpayer funds was initially spent on debt payments before the reduction?

• 9%

• 15%

• 30%

• 60%

What was the name of the law created by Congress to help Puerto Rico restructure its debt?

• Dodd-Frank

• CARES Act

• FEMA

• PROMESA

In what year did Puerto Rico declare its debt unpayable?

• 2017

• 2015

• 2019

• 2013

What major event occurred two years after Congress passed PROMESA?

• A severe hurricane hit Puerto Rico

• Puerto Rico's debt was fully paid

• The Oversight Board was dissolved

• Puerto Rico gained independence