Puerto Rico won’t pay $470M in debt due today, making default possible

by The Associated Press  |  published on May 2, 2016

Puerto Rico’s debt crisis has reached a new level, with the island’s governor saying Puerto Rico will not pay most of its $470 million US in debt payments due by Monday.

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

“Let me be very clear, this was a painful decision,” Gov. Alejandro Garcia Padilla said in a speech Sunday. He added that the government could not make the payment without sacrificing basic necessities for the island’s 3.5 million residents, including keeping schools and public hospitals open.

This default is by far the largest by Puerto Rico, who has been struggling under the weight of $72 billion US in debt that its officials say it cannot pay. Puerto Rico expects multiple lawsuits to be filed shortly after Monday’s default.

Here’s a breakdown of what has already happened to Puerto Rico and why it matters to individual investors.

  • burns

    If they can’t pay us back, why would we consider making them a State like they brought up last month. We have to cut all funding of these places “outside our country’s borders”. Or we will go bankrupt and loose the ability to maintain our own stability. You want more people coming across the ocean in inner tubes, just keep this crap up. We are under siege from all of our borders , the time has arrived for a temporary lockdown of out Republic, before these immigrants destroy it, as King Obammer wants .

    • democrat CockRoach

      Last month? They’ve been whining for that for 50 years and our luck we’ll get some communist like barry to accomplish the task.

  • gerald Hughes

    History has watched for 2000 years, as quasi socialists/socialists/communists, set up governments in their quest for a free lunch.
    History has watched for 2000 years as they took them down the tube.
    Still, every time an Obama, a Clinton and Sanders or a Chavez come trolling down the lane tootling on their flute, the liberal garbage run for the bandwagon.

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