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Oversight Board Wants Court To Wipe Out $6B of Puerto Rico's Debt

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Oversight Board Wants Court To Wipe Out $6B of Puerto Rico's Debt
It is currently unclear when a judge would be able to rule on the board's motion.
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The board that oversees Puerto Rico's financial crisis is asking a federal court to invalidate $6 billion of the island's public debt.

On Monday, the federal control board says the $6 billion includes bonds issued in 2012 and 2014 were in violation of the island's constitutional debt limits. This follows an investigation that started in September 2017 to sort through all the debt issued by Puerto Rico in connection to the current financial crisis engulfing the U.S. territory.

 

In 2015, Puerto Rico's government announced it would not be able to repay its debts and declared a form of bankruptcy in 2017. Overall, the island is currently dealing with nearly $74 billion in public debt.

There's no clear timetable as to when a judge would be able to rule on the board's motion.