Puerto Rico governor blasts Republicans for refusing to help with debt

Puerto Rico Gov. Alejandro García Padilla blasted Congress Wednesday for refusing to include a provision allowing the U.S. territory to restructure its debt in the $1.1 trillion omnibus spending bill awaiting legislative approval.

"I am extremely disappointed,” Padilla said at a Club Luncheon. “Congress missed an opportunity to do the right thing.”

With $73 billion in debt that the territory cannot pay for, Padilla said he initially was hopeful that lawmakers would help Puerto Rico avoid bankruptcy. Instead, he said, congressional Republicans sided with hedge fund managers who stood to profit off the territory’s debt.

“Hedge funds proved more persuasive over Congress than the well being of 3.5 million American citizens,” Padilla said. “Wall Street won this round.”

The spending bill, though, did make help Puerto Rico’s health care system, including enhanced Medicare payment rates expected to bring in over $900 million within 10 years.

Padilla said this provision won't help that much, likening it to a doctor who treats a stroke victim with little more than dietary recommendations.

He said the risk of a default on Jan. 1 is highly likely, putting him in the position of either following Puerto Rico’s constitution by funding basic services, or paying back creditors.

“If they make me choose between Puerto Ricans and creditors, I will choose Puerto Ricans,” Padilla said. Even so, some basic services will be lost.

He said the three Democratic presidential candidates, former U.S. Secretary of State Hillary Clinton, U.S. Sen. Bernie Sanders (I-Vt.) and former Maryland Gov. Martin O'Malley all supported restructuring the debt, while Republicans, most notably U.S. Sen. Marco Rubio (R-Fla.), did not.

“Rubio should know better” since only New York is home to more Puerto Ricans on the U.S. mainland than Florida, he said.