Latin American Economy & Business - July 2015 (ISSN 1741-7430)

On 29 June 2015, the governor of Puerto Rico, Alejandro García Padilla, announced the formation of a Working Group that will seek a final and sustainable solution to the territory’s well-publicised financial problems by the end of August. Discussions between the government and bondholders of in coming weeks will focus on four issues: government revenues, government expenses, structural reforms and a major debt restructuring. Among much else, the government will be seeking changes to the US Bankruptcy Code that will allow it to seek Chapter 9 protection – like municipalities in the US.