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Gov: Puerto Rico To Default On $37M In Interest Due On Bonds

By on December 30, 2015

SAN JUAN – Puerto Rico’s governor says the U.S. territory will make a $594 million bond payment due next week but default on $37 million in interest.

Gov. Alejandro Garcia Padilla said Wednesday that the payment includes $329 million in general obligation bonds. He said there is no money to make a $400 million payment in May in Government Development Bank bonds.

The island is struggling with $72 billion in public debt that Garcia has said is unpayable and needs restructuring. The government has no access to local or federal bankruptcy laws.

Puerto Rico recently made a $354 million bond payment, but the island’s Public Finance Corporation missed a $58 million bond payment in August.

The Associated Press

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