SAN JUAN: The government of Puerto Rico has confirmed that it failed to make a US$58 million debt payment that was due Saturday, a significant escalation of the debt crisis facing the United States island territory.
Puerto Rican officials had warned that they would not make the payment because the island legislature failed to appropriate the funds, but they argued it should not be considered a default.
Moody’s Investor Service said the missed payment was the first in what it believes will be broad defaults on commonwealth debt.
Government Development Bank President Melba Acosta Febo said that Puerto Rico made a partial payment of US$628,000 interest.
Governor Alejandro Garcia Padilla said several weeks ago that Puerto Rico cannot pay its US$72 billion in accumulated public debt and needs to restructure.
