USA’s Puerto Rico calls for bankruptcy

The Caribbean island Puerto Rico's governor has asked the US government to restructure the island’s debts under US bankruptcy code. This comes to light amidst speculations of its bankruptcy.

The governor Alejandro Garcia Padilla has said in a televised address that the burden should be shared by bondholders, and this would need restructuring of the US’s bankruptcy code.

The island is currently struggling to repay its whopping $73 billion debt burden. It’s crunch point came on Monday, and coincided with that of Greece.

Retired US bankruptcy judge Steven Rhodes has been asked by the island territory to help solve its increasing share of problems. He said Puerto Rico "urgently needs our help”. "It can no longer pay its debts, it will soon run out of cash to operate, its residents and businesses will suffer," he added.

Puerto Rico's bonds plunged on Monday as its investors asked for greater compensation amid the increasing risk factor.

(Image credit: Indiatimes)