U.S. Senator Blumenthal Says Puerto Rico Avoids Bond Default

  • Governor doesn't comment directly on Dec. 1 debt repayment
  • Commonwealth to claw back revenue pledged to other bonds
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U.S. Senator Richard Blumenthal said during a Congressional hearing Tuesday that Puerto Rico has averted defaulting on its bonds. Governor Alejandro Garcia Padilla wasn’t so clear.

Blumenthal, a Democrat, spoke at the beginning of a hearing on Puerto Rico, which faces a debt payment Tuesday. He didn’t provide details. Garcia Padilla didn’t say during his testimony before the Senate Judiciary Committee in Washington whether the $354 million in payments due Tuesday would be made.