"The government has always said that Puerto Rico's debt is unpayable and that the music would stop," Puerto Rico's Government Development Bank said in a statement. "The default is very significant, and it likely means that Puerto Rico will not be able to re-enter the market for many, many years." It also allows Puerto Rico to temporarily lower the federal minimum wage for some younger workers. Obama noted there is tough work ahead to get Puerto Rico out of the hole. It creates a federal control board for Puerto Rico that will supervise some debt restructuring and negotiate with creditors.

Source: ABC News July 01, 2016 04:04 UTC