Puerto Rico in ‘deep trouble’ as storm adds to debts: Trump

epa06218429 View of La Plata River in the aftermath of Hurricane Maria, in Toa Baja, Puerto Rico, 21 September 2017. Hurricane Maria, the most powerful storm to hit Puerto Rico in nearly a century, has knocked out power, caused flooding and mudslides.  EPA-EFE/Thais Llorca

Bloomberg

President Donald Trump said Puerto Rico is in “deep trouble” as devastation brought by Hurricane Maria adds to the crippling debts that have already pushed the US territory into a record-setting bankruptcy.
The storm, the worst to batter the island in nearly a century, caused widespread flooding, washed away roads and knocked out power to its 3.4 million residents by heavily damaging the government-run electricity system. Trump’s tweets night came amid pressure for Washington to extend more aid to help the distressed government recover. “Texas & Florida are doing great but Puerto Rico, which was already suffering from broken infrastructure & massive debt, is in deep trouble,” Trump said on Twitter. “Much of the island was destroyed, with billions of dollars… owed to Wall Street and the banks which, sadly, must be dealt with.”
Puerto Rico’s recovery will depend heavily on federal aid because it has little financial wherewithal to cope with a catastrophe like the storm that passed through last week, causing billions of dollars in damage. Reeling from a shrinking economy, the island has defaulted on its bonds and in May filed for bankruptcy to escape from more than $70 billion of debt. The fiscal collapse has effectively shut down Puerto Rico’s access to the US bond market, promising to make it more difficult for it to borrow to rebuild.
Congress last year enacted emergency rescue legislation that extended Puerto Rico’s authority to seek court protection from creditors, which it previously lacked, but has provided little financial assistance beyond that.
While Trump offered nothing specific, the series of late-night tweets followed increasing calls for the administration to step up involvement in recovery efforts in Puerto Rico and the US. Virgin Islands. House Minority Leader Nancy Pelosi, a Democrat, said the Defense Department should be further mobilised to assist with law enforcement and search and rescue operations.
Republican Senator Marco Rubio, during a press conference in San Juan, suggested exploring whether low-interest loans could be extended to ensure it has needed funds.

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