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Can the U.S. Avoid a ‘Chaotic Resolution’ of the Puerto Rico Debt Crisis? | The Fiscal Times

Lawwmakers in Washington appear to be getting increasingly anxious about the situation in Puerto Rico, which is poised to default on some $70 billion in debt the island territory has acquired over the past several years. A key concern is the impact such a default could have on U.S. bond markets.
In a letter to Treasury Secretary Jack Lew on Friday, Senate Finance Committee Chairman Orrin Hatch (R-UT) asked the administration about its plans for dealing with the island’s finances, including its opinion on a move being pushed in Congress to allow Puerto Rico’s municipalities and public utilities to file for Chapter 9 bankruptcy. Hatch’s letter came just days after two other senators, Chuck Schumer (D-NY) and Richard Blumenthal (D-CT) introduced legislation that would make those Chapter 9 filings possible.

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