Puerto Rico Official Says Island Will Default on Agency Debt

The Capitol building, left, stands in San Juan, Puerto Rico.

Photographer: Christopher Gregory/Bloomberg
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Puerto Rico said it won’t make a bond payment due Saturday, putting the commonwealth on a path to default and promising to initiate a clash with creditors as it seeks to renegotiate its $72 billion of debt.

The government doesn’t have the money for the $58 million of principal and interest due on Public Finance Corp. bonds, Victor Suarez, the chief of staff for Governor Alejandro Garcia Padilla said during a press conference Friday in San Juan.