U.S. official: Puerto Rico should be allowed to file for bankruptcy

In a letter to a senator, the U.S. Treasury Secretary Jacob Lew said the U.S. government should make it possible for Puerto Rico to file for bankruptcy, and that this would alleviate the island’s dire financial situation. Puerto Rico’s public debt amounts to over 72 billion dollars, which it is unable to pay off. Governor Alejandro Garcia Padilla has been pushing for the right of Puerto Rico’s public agencies to file for bankruptcy, but they are in need of a co-sponsor for the proposal. Leading House Republicans have expressed concerns that such measures would not solve Puerto Rico’s financial problems. Garcia traveled to the U.S. to discuss the issue with Lew and legislators.