The Washington PostDemocracy Dies in Darkness

Congress offers no lifeline as Puerto Rico heads toward default

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December 16, 2015 at 12:57 p.m. EST
Puerto Rico's fiscal crisis is entering a dangerous new phase as Gov. Alejandro Garcia Padilla said the government is forced to choose between repaying creditors and paying for critical government services. (Ricardo Arduengo/AP)

Drowning in $73 billion of debt and facing the likelihood of cascading defaults in just weeks, Puerto Rico had hoped Congress would cast it a lifeline in the end-of-the-year spending bill Tuesday night. Instead, the territory got next to nothing.

There was no Chapter 9 bankruptcy protection to create an orderly process for restructuring debt — a move opposed by some of the island’s creditors and by many congressional Republicans who compared it to a bailout. There was no emergency infusion of money to allow the territory to make coming debt payments. And there were no new tax credits to help lift Puerto Rico’s economy out of a decade-long recession.