Puerto Rica in default after missing debt payment

It is the most indebted territory or state per capita in the United States and now Puerto Rica is in default.

The government has confirmed it failed to make a debt payment of 50 million dollars – around 35 million euros – due on bonds as it did not have the funds available.

The ratings agency Moody’s said it viewed the development as a default.

The US commonwealth paid only 628,000 dollars of a 58 million dollar payment due on its Public Finance Corp bonds.

In a statement the Government Bank President Melba Acosta Febo said it was because the legislature did not appropriate sufficient funds.