Puerto Rico Governor Alejandro Garcia Padilla said that the US commonwealth cannot pay its roughly $72 billion in debts. He called for a negotiated agreement with bondholders to delay payment for a number of years.

A comprehensive debt-restructuring plan will be developed by Puerto Rico officials by the end of August. Padilla said, "Without such a plan, "the option is unplanned and unilateral default of our obligations, with all the negative consequences that this implies for each and every one of us".

Puerto Rico bonds' price sold in 2014 touched record lows of around 68 cents on the dollar Monday. Mr. Padilla said that they cannot allow the heavy weight of the debt to force us to choose between paying their creditors and paying their policemen, teachers and nurses.

Mr. Padilla promoted various measures to repair government operations. This includes additional spending cuts and establishing a five-year fiscal plan.

In Washington, Padilla demanded lawmakers to allow Puerto Rico's municipal entities access to the protections afforded under chapter 9 of the bankruptcy code. It is an option for cities and towns and any subdivision, agency or instrumentality of a state.

However, Puerto Rico doesn't qualify as a state for the purposes of chapter 9 and its heavily indebted authorities can't file for bankruptcy protection.

Mr. Padilla said all the measures taken by them in the last two years reflect their willingness to pay. They have done all that was within their power. However, the next step requires more favorable terms for the repayment of their debt.