Puerto Rico Senate approves debt moratorium amid financial crisis

SAN JUAN, Puerto Rico (AP) — Puerto Rico's Senate approved a measure today that would allow the governor to declare a fiscal emergency and place a moratorium on debt payments amid a worsening economic crisis.

Senators said the measure would ensure the continuation of essential government services as the U.S. territory runs out of money. It also would create a path to place the troubled Government Development Bank into receivership if needed.

"Puerto Rico is in need of immediate relief," the measure states. It "needs tools to exercise its police powers in order to protect the health, safety and welfare of the people of Puerto Rico."

If approved, the bill would allow the governor to impose a moratorium until January 2017. It also calls for the creation of a financial advisory authority that would oversee fiscal issues.

The bill comes as Puerto Rico urges U.S. Congress to approve a restructuring mechanism to deal with a $70 billion public debt load the governor has said is unpayable.