The incentive for avoiding bankruptcy is a push for statehood.
Mr. Rosselló’s most immediate problem is the liquidity crisis sparked by former Gov. Alejandro García Padilla’s initiatives—dating to at least 2014—seeking bankruptcy protection. Puerto Rican debt service amounted to only about 16% of the consolidated budget in 2016. But with money tight, Mr. García Padilla was unwilling to cut expenses. Instead he decided not to pay the debt service, and the island lost access to credit markets.
Roselló is asking for more time, and some of the debt are agreeable. Read the full article here.