WASHINGTON (AP) — Treasury Secretary Jacob Lew is warning of widespread consequences if the Senate fails to act before Friday on a rescue package for debt-stricken Puerto Rico.
The island owes a $2 billion debt payment to creditors on July 1. The House already passed legislation to create a new control board and restructure some of the U.S. territory’s $70 billion debt.
In a letter Monday, Lew said the crisis in Puerto Rico “will ratchet up to an even higher level” if Congress doesn’t act in the next four days.
Senate Majority Leader Mitch McConnell has said the Senate will consider the House bill this week. But some senators in both parties have expressed reservations about the legislation.
Puerto Rico has already missed several payments to creditors amid a lengthy recession.
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