Puerto Rico Avoids Default by Redirecting Revenue From Bonds
- Government Development Bank pays principal, interest due
- Commonwealth to claw back revenue pledged to other bonds
Puerto Rico Makes Payments to Avoid Default
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Puerto Rico said it made all principal and interest payments due Tuesday, averting a default on directly guaranteed bonds and allowing the commonwealth to continue talks with creditors to reduce its $70 billion debt burden.
Governor Alejandro Garcia Padilla signed an executive order to permit the redirection of revenue budgeted for highway and convention center bonds and other agencies to pay for debt issued or guaranteed by the commonwealth, according to a Government Development Bank statement. The GDB, which lends to the commonwealth and its agencies, had $354 million in principal and interest payments due Tuesday.