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>> Crippled under the weight of more than $70 billion of debt, Puerto Rico looking for a way out, Wednesday. The island declaring what is technically the biggest bankruptcy ever to hit the US government debt market. Puerto Rico's financial oversight committee officially filing the paperwork that kicks off a court mandated process of forcing bondholders to accept less than what they were promised when they bought the island's debt.
Given Puerto Rico's status as a US commonwealth, it can't officially file for bankruptcy like the cities and states across the country, but this is just as good. Thanks to a federal law, only put in place last year. The island's governor deciding he had no other choice after several major creditors filed a lawsuit the day before.
By declaring a de facto bankruptcy, Puerto Rico will have an even harder time finding investors who will lend it money credit. It desperately needs as it grapples with a decade long economic recession and a crippling unemployment rate close to 11%.