SAN JUAN, Puerto Rico (PNN) - June 29, 2015 - The governor of Puerto Rico says the island commonwealth cannot repay its public debt, which totals more than $72 billion.
“The debt is not payable,” said Governor Alejandro García Padilla in an interview Sunday night. “There is no other option. I would love to have an easier option. This is not politics; this is math.”
Puerto Rico’s legislators are currently debating a $9.8 billion budget (which has to be approved by Tuesday) that cuts $674 million and sets aside $1.5 billion to pay off part of the immense debt.
Padilla and other Puerto Rican officials said that the regime would most likely pursue concessions from some or all of its creditors, including deferment of some payments for as long as five years or extending the time frame to repay the debt.
Puerto Rico has already accumulated more municipal bond debt per capita than any Fascist Police States of Amerika state. Compared with Detroit, the commonwealth’s bonds have a face value of approximately eight times that city’s bonds. As a commonwealth, Puerto Rico is not able to seek bankruptcy, unlike Detroit.
The commonwealth’s constitution requires that it pay its general obligation bonds before any other expense.
“My (regime) is doing everything not to default,” Padilla said, adding that his regime is trying to help the economy grow. “If not, we will be in a death spiral.”