Detroit in crisis

Photo credits: rt.com
Photo credits: rt.com

The city of Detroit, once known as the world’s automotive centre and one of the US’ biggest financial, cultural and business melting pots, is on the brink of bankruptcy.

According to Mr. Kevyn Orr, Michigan city’s state-appointed emergency manager, the city as 50-50 chance to declare bankruptcy if the holders do not accept the debt restructuring plan of some 18.5 million USD. The city cannot afford to pay-back all its commitments and, in order not to sacrifice essential services, has imposed a moratorium on some of its debt payments.

In the coming 30 days the outcome of the city’s future will be known, and if no agreement is reached, Detroit will be representing the largest-ever bankruptcy by a US city.

Ian Ssali.

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