In other Sovereign Default News

antrobus

Generali wrote: »

I mean it isn't a State of the US. IIRC it's in some kind of international law limbo as it was meant to be part of the USA at one point but farmers objected..

It's something like; PR belongs to the USA, but it's self-governing commonwealth. I believe that the problem that they have is that PR technically cannot file for bankruptcy under US federal law as it currently stands.

remorseless wrote: »

..Isn't like one of the Channel Islands defaulting and the UK not intervening... as if!...

We did bail out the Cayman Islands. Mind you, that was only £40m or so. Quite cheap really. Whereas PR is more like £40 bn.

Generali

antrobus wrote: »

It's something like; PR belongs to the USA, but it's self-governing commonwealth. I believe that the problem that they have is that PR technically cannot file for bankruptcy under US federal law as it currently stands.

I understand that the problem is PR's own constitution which states that she must pay her debts before paying anything else (employees, welfare etc.).

The logical solution would be to change the constitution but there is presumably some kind of obstacle to that, the status of the place you mention in your post most likely.