Puerto Rico Closer to Default After Missed Funds Transfer
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Puerto Rico lurched one step closer to default, saying one of its agencies failed to transfer cash to a trustee to cover an Aug. 1 debt payment because the legislature didn’t appropriate the funds.
It’s unclear whether the Public Finance Corp. will pay $36.3 million of bonds maturing that day. If it doesn’t, that would mark the first time Puerto Rico has defaulted on a debt payment and would come as the commonwealth seeks to negotiate with creditors to restructure $72 billion of obligations.