The financial situation in Puerto Rico continues to spiral out of control, as Puerto Ricans were hit with the dreadful reality of the matter following Governor Alejandro Garcia Padilla’s television announcement. Governor Padilla, who has been working to restructure the debts owed by the commonwealth, officially declared that the $7.2 billion dollar deficit is simply unpayable.
Padilla said, “even if we increased taxes and cut back spending, the magnitude of the problem is such, because of the weight of the debt we carry, that it would solve nothing,” based on an analysis conducted by former World Bank and International Monetary Fund Officials. The report dauntingly foreshadows a ten year period of economic stagnation and outmigration on the island.
Legally, Puerto Rico cannot file for bankruptcy because it is not a municipality of the United States, but in his television address, Governor Padilla urged that they be given the opportunity to do so. However, the US does not seem to be considering bailing Puerto Rico and its 3.5 million people out, though White House spokesman Josh Earnest advises that they will continue to guide Puerto Rico through this crisis.
Whether or not Puerto Rico, which has been experiencing an economic decline for almost ten years now, will get the aid they need to solve their crisis is yet to be known, but we will keep you updated with the latest on the report.