Puerto Rico close to bankruptcy

Puerto Rico is close to bankruptcy, as the local authorities will not be able to carry out planned for today payment of 370 million USD. The news were released by the governor of the island, which is free acceded to the US territory, Alejandro Garcia Padilla.
Garcia Padilla said that these payments will be stopped.
"Let me put it quite clear that it was a very difficult decision. We would prefer to have a legal basis allowing us to restructure debts more organized", said the governor Alejandro Garcia Padilla.
The state-owned Development Bank has obligations total worth 422 million USD. Of them, 22 million USD are interest, which authorities of the island are planning to pay. The restructuring of another 30 million USD was already agreed with bondholders, but the remaining 370 million USD are debt, which island cannot cover. Garcia Padilla said that these payments will be stopped.
Then most likely against Puerto Rico will be filed lawsuits. The total debt of the island is nearly 70 billion USD. In recent months, the authorities are trying to develop a plan for restructuring, but their efforts are hampered.
In June 2015 the governor of Puerto Rico told that the island is unable to pay all its debt. He added that he intends to ask the numerous lenders to mitigate the terms of payment, which means postponing some payments to five years or a significant extension of the current program in repayment of loans.
In recent years the growth of the economy of Puerto Rico was artificial, subordinate to heavy indebtedness. As a result, the country announced it would pay contractual obligation in the amount of 422 million USD maturing May 1. In August last year there was a similar case, then the sum was 58 million USD. A month ago there was a change in the Constitution of Puerto Rico, according to which the country can defaulted for a long period of time.