SAN JUAN, Puerto Rico – Puerto Rico's governor says he will soon submit one of the most austere budgets in the island's history and he's appealing to U.S. President Barack Obama's administration and a divided local legislature to work together in finding solutions for the U.S. territory's fiscal crisis.
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Friday's call from Gov. Alejandro Garcia Padilla came just hours after Puerto Rico's Government Development Bank released a report warning of a possible moratorium on debt payments. The bank also said it and the government could run out of money soon.
Puerto Rico is struggling to raise new revenue as it faces $72 billion in public debt. Legislators recently rejected a proposal to implement a new tax despite warnings from Garcia that it would have a detrimental effect on the economy.