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Puerto Rico is facing the largest municipal debt restructuring in US history after its plan was approved by Justice

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  • BBC News World

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Puerto Rico accumulated unsustainable levels of debt in the years leading up to 2017, when it filed for bankruptcy.

Years of debt buildup, devastating hurricanes, political turmoil and a prolonged epidemic are some of the challenges Puerto Rico has faced as it seeks US court approval to restructure its debt.

Federal Judge Laura Taylor Swain’s decision to green-light the island’s plan to exit bankruptcy ends nearly five years of litigation and will facilitate its return to the capital markets.

Puerto Rico accumulated unsustainable levels of debt in the years leading up to 2017, when it declared bankruptcy and began the process of restructuring its multi-million dollar debt, which exceeded $70 billion.

At that time, the island was mired in a serious economic crisis. Its poverty rate was 45%, unemployment was 12% – twice the US average – and its population immigrated in droves.

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