Puerto Rico's governor has signed a bill that puts the island's debt payments on hold until January 2017. Gov. Alejandro Garcia Padilla says the island's first priority is covering payments for essential services.
Puerto Rico acted this week following reports that a key financial institution, the Government Development Bank, is nearly insolvent. A group of hedge funds went to court to block public agencies from withdrawing funds from the bank. Within hours, the Legislature moved to pass the debt moratorium by approving the measure.