The government of Puerto Rico was able to make a US$645 million payment Tuesday, before a July 1 deadline imposed by its creditors.
In addition to paying the general obligation bonds, the island's administrative government paid US$415 million for bonds related to electricity services.
However, Puerto Rico still has to pay over US$70 billion in debt payments.
Governor Alejandro Garcia Padilla spoke to the nation on a televised message Monday night, highlighting the strain the debt places on the island’s authorities:
"We cannot allow them to force us to choose between paying for our police, our teachers, our nurses, and paying our debt," Padilla said.
The island has already issued a petition to the United States Congress to declare bankruptcy. But the request is unlikely to receive a positive response since, according to U.S. law, only cities and municipalities can declare bankruptcy.
RELATED: Puerto Rico May Declare Bankruptcy as US Rejects Bail Out
Capitol Hill would have to change the law to include commonwealth states into the Chapter 9 – bankruptcy clause – in the U.S. State Code.
Many experts believe the situation with Puerto Rico is worse than the now infamous Greek debt crisis.
According to a report issued by a team of experts – headed by Anne Krueger, former chief economist at the World Bank – the situation is worsening for Puerto Ricans.
“Puerto Rico faces hard times. Structural problems, economic shocks and weak public finances have yielded a decade of stagnation, emigration and debt,” reads the Krueger report.
Alan Valdes, director of floor trading at DME Securities said it is becoming a problem for investors:“To tell you the truth, Puerto Rico is a bigger problem for American investors than Greece.”
The island's government will now have to come up with a solution before a looming August deadline.
RELATED: Puerto Rico Teachers Strike Over School Closures
The island has been hard hit by economic crisis and austerity measures. The current crisis and cutbacks on public services are impacting the lives of thousands of Puerto Ricans. In June, Puerto Rico’s teachers union went on strike protesting against the closure of 63 schools as part of education cuts.
Trade Union Leader Mercedes Marines says the schools targeted for closure are in the poorest areas of Puerto Rico, which makes it even more difficult for students to find private alternatives to get their education.
She added that this measure of closing the schools in Puerto Rico corresponds to criteria imposed by the United States, which is“cut off from the reality of the country.”
RELATED: teleSUR interviews Working People's Party leader Rafael Bernabe direct from San Juan: