Bankruptcy can give Puerto Rico the help it needs

This is an opinion item.

Author(s)	The Boston Globe editorial board
Source	The Boston Globe
Date	August 6, 2015
URL	https://www.bostonglobe.com/opinion/editorials/2015/08/06/use-bankruptcy-help-set-puerto-rico-new-path/hpSs8LxHLvfQKGV0nkGrGM/story.html
Quote	But the choice isn’t between bankruptcy and full repayment; it’s between a disorderly default, and an established judicial process in which both sides can make their cases to a court. And the moral hazard argument runs both ways: Investors involved in Puerto Rico’s ongoing attempts to borrow its way out of its problems had to know there was political risk in lending to the overleveraged government. The question here is not what’s best only for creditors, but what’s best to put the island on the path to economic recovery.

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This item argues for the position Puerto Rico should be allowed to declare bankruptcy on the topic Puerto Rican government-debt crisis.