Socialist Worker

Puerto Rico is being punished

Issue No. 2466

Loan sharks who lent to Puerto Rico’s government are demanding massive austerity after it defaulted on a payment for the first time last week.

Many ordinary Puerto Ricans could also lose out as saving and pension funds are hit.

The territory is governed by the US and uses the dollar as its currency. Like the weaker eurozone economies it has no control over its currency.

It can’t apply for bankruptcy to international bodies as it is not a sovereign country. But nor can it apply to the US as it is not a state. 

Right wingers are blocking a proposed US law to change this. 


If you enjoy Socialist Worker, please consider giving to our annual appeal to make sure we can maintain and develop our online and print versions of Socialist Worker. Go here for details and to donate.

Article information

International
Tue 11 Aug 2015, 18:00 BST
Issue No. 2466
Share this article


Tags



Mobile users! Don't forget to add Socialist Worker to your home screen.