The U.S. territory of Puerto Rico urges Washington to allow it to declare bankruptcy as it faces defaulting on its debts. Paul Chapman reports.
Puerto Rico has until Wednesday for repay something of its 73-billion dollar debt and it's not going to happen. Its governor wants to restructure the debt under the U.S. bankruptcy code as it faces running out of cash. (SOUNDBITE)(Spanish) PUERTO RICO GOVERNOR ALEJANDRO GARCIA PADILLA SAYING: "The goal would be to achieve a negotiated moratorium with the bond-holders to postpone for a number of years the debt payments in a way that we could use that money to pay the debt and invest here in Puerto Rico to create jobs and accelerate the economy." Puerto Rico is a U.S. territory but isn't eligible to declare bankruptcy because it's not a municipality. A report on its cash problems says they're worse than expected and that tax rises and spending cuts alone won't be enough. The report blames the troubles on the removal of tax preferences for manufacturers, a housing price bust and 2009 U.S. mainland recession along with rising oil prices Despite Puerto Rico's problems a White House spokesman said on Monday the U.S. wasn't about to bail it out.