Judge Approves Deal to Resolve Puerto Rico Bankruptcy
MIAMI — Puerto Rico received approval from a federal judge on Tuesday to leave bankruptcy under the largest public-sector debt restructuring deal in the history of the United States, nearly five years after the financially strapped territory declared it could not repay its creditors . Since Puerto Rico entered bankruptcy, its economic crisis has only been further deepened by Hurricanes Irma and Maria , a series of earthquakes and the coronavirus pandemic . The restructuring plan will reduce the largest portion of the Puerto Rico government’s debt — some $33 billion — by about 80 percent, to $7.4 billion. The deal will also save the government more than $50 billion in debt payments. And, though at a discount, Puerto Rico will start repaying creditors, something it has not done in years. The government said in 2015 that it could no longer pay its loans. “ Today is truly a momentous day, and it is a new day for Puerto Rico,” Natalie A. Jaresko, the executive director of the over