Puerto Rico Unable to Pay Public Debt

Puerto Rico's governor acknowledged his commonwealth is unable to pay its debt and would have to seek significant concessions from its creditors on Sunday, a day before a report is set to be released on the island's financial stability. "The debt is not payable,” Gov. Alejandro García Padilla told the New York Times. " This is not politics, this is math." The island of 3.6 million people has an estimated $72 billion in debts outstanding, which is more municipal bond debt per capita than any other American state. Unlike mainland U.S. cities like Detroit, Puerto Rico is a commonwealth and can't declare bankruptcy. Default could result in a financial limbo that could take years to resolve, according to the Times.