Puerto Rico to default on $37M in interest due on bonds
SAN JUAN, Puerto Rico -- 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.