U.S. Senate passes Puerto Rico debt relief bill

The U.S. Senate on Wednesday approved legislation to help address Puerto Rico's 70-billion-U.S. dollar debt, just in time for President Barack Obama to sign the bill into law ahead of a possible debt default deadline.

With a vote of 68-30, the Senate passed a bill that would allow the unincorporated U.S. territory of Puerto Rico to restructure its massive debt load while establishing an outside control board to oversee its finances. The House of Representatives had approved the bill earlier this month.

Obama said after the vote that he looked forward to signing the bill into law and commended lawmakers for passing it.

"This bill is not perfect, but it is a critical first step toward economic recovery and restored hope for millions of Americans who call Puerto Rico home," he said in a statement.

The bill came just two days before Puerto Rico is to face a potential default on its next debt payment of 2 billion dollars.

While the legislation will not provide any direct financial aid to the territory, it will bar any potential lawsuit between Puerto Rico and its creditors, which would provide the territory the breathing room for the outside control board to restructure its debt and develop a new budget.

"This bill won't cost the taxpayers a dime. What it will do is help Puerto Rico restructure its financial obligations and provide much-needed oversight to put into place reforms," Senate Majority Leader Mitch McConnell said Wednesday.

"If we don't act before the island misses a critical debt payment deadline this Friday, matters will only get worse -- for Puerto Rico and for taxpayers." Endi