Puerto Rico Defaults on Bond Payment

Puerto Rico has announced that it won’t be able to pay a US$58 million bond payment that was due on Saturday. This means that for the first time in its history, Puerto Rico will default, showing the depth of its cash flow problems. The Government Development Bank for Puerto Rico paid only a tiny fraction of what was due on its public finance bond. In July the Governor of Puerto Rico called for a moratorium on the US$72 billion debt, which he said was unpayable. teleSUR