SAN JUAN, Puerto Rico (AP) - Puerto Rico's governor believes the U.S. territory's $72 billion public debt is unpayable, according to a published report.
SAN JUAN, Puerto Rico (AP) — Puerto Rico's governor believes the U.S. territory's $72 billion public debt is unpayable, according to a published report.
The New York Times reported late Sunday that Gov. Alejandro Garcia Padilla said the island will seek to defer payments while negotiating with creditors.
The comments were published less than a day before Garcia is scheduled to deliver a public address as legislators debate a $9.8 billion budget that calls for $674 million in cuts.
Garcia recently confirmed that he had considered allowing the government to declare bankruptcy amid a nearly decade-long economic slump. His administration is pushing to allow public agencies the right to file for bankruptcy under Chapter 9.
Puerto Rico's public agencies owe a large portion of the debt, with the power company alone owing some $9 billion.