Early on Wednesday, the Puerto Rico’s House of Representatives had passed an emergency bill permitting the govt. to stop the payments on its debt, hurling into doubt wider restructuring plans to strip off a financial collapse of the United States Commonwealth.
The bill accepted in wee hours of Wednesday by vote of 26 – 21 follows endorsement of bill by the Senate on Tuesday. This step would allow Gov.
Alejandro Garcia Padilla to announce a halt on any debt payment he believes necessary, and it also change the structure of the Govt. Development Bank.
Governor Garcia Padilla is anticipated to hurriedly sign the bill into the law.
Loaded by a 70 billion dollar debt load it pronounces it can’t pay & a 45% poverty rate that had led to a firm migration of its American citizens to mainland, the Governor Puerto Rico faces the economic downfall without a key that either alter the laws and/or includes an agreement with the creditors.
The outline of the law had haggard a quick telling-off from the creditors who embrace the Puerto Rican govt’s General Obligation debt.