WASHINGTON (Sputnik) — On June 29, 2015, Governor Alejandro Garcia Padilla announced that Puerto Rico could not pay its $73 billion debt and would soon run out of money to operate the government.
“I don’t think we have taken a position on a specific legislation at this point,” Earnest said when asked about the possibility of bankruptcy law extension to Puerto Rico. “We certainly believe that this is something that Congress should take a look at.”
Because of Puerto Rico’s unique status as US island territory, the US Congress must approve of debt restructuring under Chapter 9 of the US Bankruptcy Code.
Earnest said extending US bankruptcy law to Puerto Rico is “something we [the White House] have talked with Congress about.”
On June 29, 2015, the White House stated that the United States was not considering bailing out Puerto Rico.
