WASHINGTON (Sputnik) — On Monday, Puerto Rico defaulted on its debt for the first time in history after paying only $628,000 toward the $58 million portion of the total debt of $73 billion it owes, according to the Government Development Bank of Puerto Rico.
“The financial clock in Puerto Rico and on Wall Street does not take August off, but Congress left town for a month without addressing Puerto Rico’s financial crisis,” Gutierrez said in an email on Tuesday. “It is yet another sign that people on Capitol Hill are not taking this seriously.”
The US House of Representatives went on recess on Monday without addressing Puerto Rico’s financial crisis while the Senate plans to adjourn on August 10.
“Until Puerto Ricans make their demands clear to the Congress and fight for them, it is going to be very difficult to get anything concrete done.”
Washington only moves when persistent and consistent pressure is applied by external forces, he added.
During a floor speech at the House or Representatives last week, Gutierrez warned Puerto Rico needs to develop its own bailout plan before Congress tries to impose austerity and privatization measures that will only benefit billionaires on Wall Street.
“Whatever plan is invented in Washington or on Wall Street will not put the needs of the Puerto Rican people first,” Gutierrez said during his floor speech. “The same people who cash in on debt in places like Greece and Argentina are lining up to cash in in the Caribbean by stepping up their demands for austerity measures.”
Because of Puerto Rico’s unique status as a US territory, Congress must approve any debt restructuring plan.
Earlier on Tuesday, White House Press Secretary Josh Earnest told reporters that US President Barack Obama’s administration does not plan on bailing out Puerto Rico.
