Puerto Rico will default on small portion of the $1B in bonds due Monday: Officials
- 8 years ago
Puerto Rico will default on a portion of the nearly $1 billion in debt obligations due to its bondholders on Jan. 4.
Top officials for the commonwealth have confirmed that it will not be able to make two out of the 13 total payments due Monday to bondholders.
Puerto Rico will default on a $35.9 million payment on the Puerto Rico Infrastructure Financing Authority, and a $1.4 million payment on the Puerto Rico Public Finance Corporation.
On Nov. 30, Puerto Rico Governor Alejandro Garcia Padilla enacted an unprecedented executive order to implement a "clawback" measure that would redirect money pledged to select tax-supported bonds in order to meet the GO obligation, which is backed by the commonwealth's constitution.
Top officials for the commonwealth have confirmed that it will not be able to make two out of the 13 total payments due Monday to bondholders.
Puerto Rico will default on a $35.9 million payment on the Puerto Rico Infrastructure Financing Authority, and a $1.4 million payment on the Puerto Rico Public Finance Corporation.
On Nov. 30, Puerto Rico Governor Alejandro Garcia Padilla enacted an unprecedented executive order to implement a "clawback" measure that would redirect money pledged to select tax-supported bonds in order to meet the GO obligation, which is backed by the commonwealth's constitution.