Puerto Rico’s governor says that the island will default on its debt in January or May.
The announcement comes a day after a provision that would have granted Puerto Rico access to Chapter 9 bankruptcy laws was left off the U.S. omnibus spending bill.
“There is no money to pay essential services and pay the creditors,” said Gov. Alejandro Garcia Padilla at the National Press Club luncheon. “The time will come very soon, and will probably be on Jan. 1, that I will not have money to do both things and if they make me choose between Puerto Ricans and creditors, I will choose Puerto Ricans, always.”