Puerto Rico to seek debt moratorium from bondholders
By DANICA COTO, Associated Press
Jun 29, 2015 5:22 PM CDT
FILE- In this April 30, 2015, file photo, Puerto Rico Gov. Alejandro Garcia Padilla delivers his budget address for the next fiscal year at the Capitol building in San Juan. Puerto Rico's governor believes the U.S. territory's $72 billion public debt is unpayable, his spokesman confirmed late Sunday,...   (Associated Press)

SAN JUAN, Puerto Rico (AP) — Puerto Rico's governor says he will create a financial team that will meet with bondholders and seek a moratorium on debt payments.

Gov. Alejandro Garcia Padilla made the announcement Monday night after saying that the U.S. territory's $72 billion public debt is unpayable. He said he would seek a moratorium of several years but did not provide specifics.

Garcia's comments come just hours after international economists released a gloomy report on Puerto Rico's economy.

Legislators are still debating a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to help pay off the debt. The budget has to be approved by Tuesday.