I don’t understand. Puerto Rico increased the minimum wage, increased taxes, increased government spending to stimulate the economy… their liberal government did everything they say will make a state solvent. Why are they defaulting?
Puerto Rico’s governor on Sunday declared a moratorium on a $422 million debt payment due Monday by the island’s Government Development Bank, the most significant default yet for the U.S. territory facing a massive economic crisis.
Governor Alejandro Garcia Padilla said in a televised speech that he signed the moratorium on Saturday in what he characterized as a “painful decision” based on inaction from the U.S. Congress, which continues to debate a legislative fix for Puerto Rico’s $70 billion debt load.
Garcia Padilla, addressing Puerto Rico’s 3.5 million people in Spanish, said the island’s American citizens had sacrificed much for the nation throughout history and asked Congress on many occasions for tools to restructure its financial liabilities.