Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.
The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment.
“The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.”
WNU Editor: I recall reading reports years ago on Puerto Rico's growing debt and the unwillingness of its politicians to stop borrowing money to pay salaries/oensions and to fund their pet projects. Sighhhh .... it looks like the chickens have come home to roost..
More News On Puerto Rico On The Verge Of Default
Puerto Rico says it cannot pay its debt, setting off potential crisis in the U.S. -- Washington Post
As Deadline Looms, Puerto Rico's Debt 'Is Not Payable,' Governor Says -- NBC
Puerto Rico Has No Easy Path Out of Debt Crisis -- WSJ
Puerto Rico in crisis: weighed down by $73bn debt as unemployment hits 14% -- The Guardian
Puerto Rico is on the verge of default -- Business Insider
Puerto Rico hopes economic report will provide fix for $73bn debt problem -- The Guardian