Puerto Rico’s economic crisis: How it happened, what’s next

4fddb67452c04c2383d655b8135020c6WASHINGTON (AP) — One bond payment missed, another looms for debt-ridden Puerto Rico as Congress fights over how to help the U.S. territory and its 3.5 million Americans.

Treasury Secretary Jacob Lew traveled to the island on Monday to highlight the impact of the financial crisis and increase the pressure on lawmakers to act.

The territory missed a nearly $370 million bond payment last week, the largest in a series of missed payments since last year. Puerto Rico has payments totaling nearly $2 billion due on July 1, including about $700 million in general obligation bonds that are supposed to be guaranteed under the island’s constitution.

Further complicating lawmakers’ efforts to steer the U.S. territory away from economic collapse are ads airing nationwide that claim the legislation amounts to a financial bailout, even though the bill has no direct financial aid.

Some House conservatives have latched onto that argument, making it difficult for Speaker Paul Ryan, R-Wis., to garner enough support for the bill. Natural Resources Committee Chairman Rob Bishop, R-Utah, says he is reworking the bill, and a new version would come this week.

The AP explains Puerto Rico’s debt crisis, what’s happening in Congress and the outside forces.

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