Puerto Rico defaults on $422 million debt payment

Children play as their mother keeps an eye on them at a beach heavily covered with seaweed in the east coast town of Humacao, Puerto Rico, Saturday, Aug. 8, 2015. The picture-perfect beaches and turquoise waters that people expect on their visits to the Caribbean are increasingly being fouled by decaying seaweed that attracts biting sand fleas and smells like rotten eggs. (AP Photo/Ricardo Arduengo)

PUERTO RICO (WISH) – Puerto Rico will not be making a $422 million debt payment that is due Monday.

According to CNN, the territory’s governor said he ordered a debt moratorium and blocked the payment.

The governor said he had to request emergency powers because no help was coming from Washington D.C.

Puerto Rico’s government development bank owes the massive debt.

The part of the debt owned by local credit unions has been moved forward.

Puerto Rico is not able to restructure its debt under chapter nine of the bankruptcy codes because of federal law. Chapter nine is typically used by bankrupt cities and local government.

CNN contributed to this report. 

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