Puerto Rico Likely to Default on Some GDB Debt, Moody's Says
- Government Development Bank owes $354 million on Dec. 1
- Commonwealth guarantees portion of Development Bank debt
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Puerto Rico is likely to default on at least a portion of Government Development Bank bond payments due Dec. 1 with the commonwealth’s cash crunch worsening, according to Moody’s Investors Service.
The GDB, which lends to the island and its localities, faces a $354 million principal and interest payment at the start of the month, just as the bank projects it may run out of available cash, according to Puerto Rico’s Nov. 6 financial report. The commonwealth expects to post a negative cash balance this month and next.