Originally published by CCTV America here.
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 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. CCTV America’s Owen Fairclough explains the situation.
(Hear JVH at around 2:10.)