Editor Desk
Jul 1, 20161 min
The last time Puerto Rico defaulted was in 1933. That pattern broke today when Governor Alejandro García Padilla argued that it was more important to fill critical needs before paying off their creditors. A spokesman for the Puerto Rican government said that the administration was making sure that essential needs were met before anything else, even at the cost of defaulting on their substantial loans. They further asserted that they would not begin to pay the bondholders until July 1. Since Puerto Rico is a U.S. territory, their default marks the first time since the Great Depression that a state has failed to pay their loans.