Gov. Alejandro García Padilla says Puerto Rico did not make nearly $370 million of the payment that was due Monday. It's the third default since 2015
In this Dec. 16, 2015, file photo, Puerto Rico Gov. Alejandro Javier Garcia Padilla speaks at a luncheon at the National Press Club in Washington. Garcia said on Sunday, May 1, 2016, that negotiators for the U.S. territory’s government have failed to reach a last-minute deal to avoid a third default and that he has issued an executive order to withhold payment. (AP Photo/Sait Serkan Gurbuz, File), photo: AP/Sait Serkan Gurbuz, File
02 of May 2016 11:09:13
SAN JUAN, Puerto Rico — Puerto Rican officials say the island's default on a $422 million bond payment is only the beginning if the U.S. Congress doesn't help resolve the situation soon.Gov. Alejandro García Padilla says Puerto Rico did not make nearly $370 million of the payment that was due Monday. It's the third default since 2015.He says in a news conference that the consequences will be severe if Congress does not restore the territory's legal ability to restructure its debt under Chapter 9.Congress left on recess last week with a bill that would permit restructuring stalled in committee. García Padilla says "Congress has to act."