Pennsylvania capital nearing bankruptcy
Tensions in Harrisburg, Pennsylvania, are mounting as the city edges closer to the harsh reality that it will have to file for bankruptcy in the near future.
The city said it will not be able to make a municipal bond payment of $3.3 million due in two weeks, and that will nudge it ever closer to the brink of being broke.
According to a report in the Washington Post, the Harrisburg government announced its decision to not make the payment on Monday. However, many are wondering why it has decided to do so. The move saves what is a relatively small amount of money for a large city by not doing so but will also compromise the Pennsylvania capital's ability to restructure its huge debt and raise money down the road.
The report said that the number of financially troubled municipal governments is small but growing. While Harrisburg's mayor has adamantly opposed declaring bankruptcy, it has been advocated by the city controller and a growing number of council members.
A UPI report on the case said that the county in which the city is based has given permission to a bond trustee to sue Harrisburg over the $35 million it owes.
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