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.