Largest US city ever to make such a move
Detroit files for bankruptcy
19/07/2013 - 2:03pm
Detroit filed for bankruptcy on Thursday, becoming the largest US city ever to make such a move. The decision was confirmed by officials, following late afternoon news reports.
As Governor of Michigan, Rick Snyder, who authorized the bankruptcy stated: “This is a difficult step, but the only viable option to address a problem that has been six decades in the making.” And he added: "This decision comes in the wake of 60 years of decline in the city, a period in which reality was often ignored. I know that many will see this as a low point in the city's history. If so, I think it will also be the foundation of the city's future."
The petition for bankruptcy was recommended by a financial manager who was appointed to resolve Detroit’s difficult financial situation. Nevertheless, the exact amount of the city’s debt remains unknown. Kevyn D. Orr, the emergency manager, told the NY Times that the debt is likely to be $18 billion (€13,7 billion) and perhaps as much as $20 billion (€15,2 billion).
Leaders in Washington and in Lansing, the state capital, yesterday issued statements expressing their concern over the matter. In addition, a White House spokeswoman said US President Barack Obama and his team were closely monitoring the situation.
Detroit flourished in the first half of the 20th century following the arrival of the automobile industry in the area, but eventually saw its economy shrinking. Nowadays, its population has dropped to 700,000 people compared to 1.8 million in 1950. As Governor Snyder pointed, citizens wait 58 minutes for the police to respond to calls, the unemployment rate had nearly tripled since 2000 and the homicide rate was at its highest level in 40 years. In addition, there are approximately 78,000 abandoned buildings in the city, vacant lots and unlit streets. europe on line
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