SAN JUAN, Puerto Rico—Puerto Rico’s governor said Wednesday that it’s probable the U.S. territory will be unable to make more upcoming debt payments because it has no more money amid a worsening economic crisis.
Gov. Alejandro Garcia Padilla spoke during a trip to Washington to meet with Republican legislators and others before a possible vote by Congress on Friday on whether to allow Puerto Rico public agencies access to Chapter 9 bankruptcy provisions.
Puerto Rico faces more than $900 million in bond payments in January, including a $357 million general obligation bond payment due Jan. 1. It would be the island’s first major default if the payment is not made. Puerto Rico’s Public Finance Corporation already missed a $58 million bond payment in August.
“If I have to choose on Jan. 1 between paying the salary of Puerto Rico workers, or paying bondholders, I will pay the Puerto Ricans,” Garcia said. “It’s that simple. They will have to go to court to force me to do the opposite.”
