Puerto Rico won’t make $370 million in debt payments Monday

by Associated Press  |  published on May 2, 2016

SAN JUAN, Puerto Rico – Gov. Alejandro Garcia Padilla announced that Puerto Rico’s government will not make nearly $370 million in bond payments due Monday after a failure to restructure or find a political solution to the U.S. territory’s spiraling public debt crisis.

Garcia said Sunday that he had issued an executive order suspending payments on debt owed by the island’s Government Development Bank, a default that will likely prompt lawsuits from creditors and could be a prelude to a deadline to a much larger payment due July 1.

The governor said Puerto Rico can’t pay the bonds without cutting essential services.

Island officials spent the weekend trying to negotiate a settlement that would have avoided the default but apparently came up short. The development comes as Congress has so far been unable to pass a debt restructuring bill for Puerto Rico.

  • Jack Burns

    No deal for you. Figure it out yourselves P.R. Cut salaries, benefits and pensions across the board and then live within your means. No bailouts.

  • Elizabeth LeNormand Ragas

    Our crappy government politicians spend spend spend and expect us to pay for it!!!!!
    If we don’t pay our taxes we go to jail! But we are expected to be fiscally responsible but politicians aren’t! Fire every damn politician that is an office now!!!!!
    Think about it if you did as bad a job as they do, you be fired!

  • The Redhawk

    If tax payers BAIL OUT this ‘GIVE AWAY MONET THEY DO NOT HAVE” Bankrupt State… How long before ILLINOIS LINES UP FOR THE VERY SAME ????? CONGRESS DO NOT START ANOTHER DISASTER!!! ONE ODUMBOCARE IS ENOUGH!!!!!

  • Rodney Steward

    Congress has been trying to come up with a scheme that gives Puerto Rico bankruptcy protection called Super Chapter 9! All because Puerto Rico like OUR country can’t control and manage their money, but what union workers they have and political figures are still getting their money, and everybody else is doing without, a lot like the European countries! Unions will destroy countries, just like out of control spending! Our country’s NEXT!!

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