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.