Despite saying that the government of Puerto Rico has “sustained our position to negotiate in good faith,” the Twitter profile of Ricardo Rosselló, Puerto Rico’s governor, formally announced on Wednesday that the U.S. territory will seek bankruptcy protection for its $70 billion debt.
The announcement came in two tweets, where Rosselló asked Puerto Rico’s fiscal control board for protection under Title III of the 2016 PROMESA bill, which Congress voted into law:
After the inability of obtaining an agreement with creditors, we request to the FOM Board the protection for PR under Title III of PROMESA. pic.twitter.com/qnrPdQ8GsR
— Ricardo Rossello (@ricardorossello) May 3, 2017
We have sustained our position to negotiate in good faith, but before the current scenario, we choose to protect our people. pic.twitter.com/3WBAFpXKao
— Ricardo Rossello (@ricardorossello) May 3, 2017
Here is a copy of Rosselló’s official May 2 letter to José Carrión, who heads up the fiscal board:
According to Reuters, the move by Puerto Rico and the fiscal board could result in “the biggest bankruptcy in the history of the U.S. municipal debt market.” The move for bankruptcy protection comes right after creditors began to sue the government of Puerto Rico after a debt restructuring deal fell through.
Last year, Latino USA dedicated an hour to the causes of the island’s debt crisis:
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