The Obama administration does not envision a bailout for the U.S. territory of Puerto Rico, according to a White House spokesman. Rough Cut (no reporter narration).
ROUGH CUT (NO REPORTER NARRATION) The White House said on Tuesday (August 4) that Puerto Rico needs an orderly process to restructure its liabilities. White House spokesman Josh Earnest reiterated that the Obama administration does not envision a bailout for the U.S. territory. Puerto Rico defaulted on debt by paying only a fraction of what was due Aug. 1, showing the depth of the island's economic and cashflow problems and potentially opening the door to broader defaults and litigation from bondholders. The U.S. commonwealth paid only $628,000 of a $58 million payment due on its Public Finance Corp (PFC) bonds, the head of its Government Development Bank said in a statement on Monday.