Congress needs to restructure Puerto Rico's debt, otherwise the U.S. territory will need a bailout, Puerto Rico governor Alejandro Garcia Padilla said Friday.
The island's government announced earlier this week it would skip a $422 million debt payment. It owes another $1.9 billion on July 1.
"It's not an issue of politics. It's not even an issue of policy. It's a mathematical issue. We do not have the money. It's as simple as that," Padilla said in an interview with CNBC's "Power Lunch."
The government is $72 billion in debt and has a staggering 45-percent poverty rate. Legislation that would restructure the debt is currently in a congressional committee.
"If Congress acts today it will cost $0 to U.S. taxpayers. If Congress does not act, then we will need a bailout," Padilla said. "It will be very expensive to U.S. taxpayers."