Recently, Puerto Rico’s government defaulted on close to $1 billion in debt in order to maintain “essential services.” The legislation will allow for the creation of a federally appointed oversight board to help balance Puerto Rico’s budget and manage debt, but will take some time to set up. The legislation also calls for a temporary stay on bondholder lawsuits, and Puerto Rico must negotiate permanent restructuring terms with creditors on a voluntary basis.

Read the full article from The Washington Post.