Puerto Rico Declares Emergency Period for Development Bank
- Executive order allows governor to preserve bank liquidity
- Governor says he won't suspend the bank's debt payments
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Puerto Rico Governor Alejandro Garcia Padilla signed an executive order declaring an emergency period for its Government Development Bank to help keep it operating, while declining to halt or suspend its debt obligations.
The Development Bank, which lends to the U.S. commonwealth and its municipalities and is running out of cash, faces a $422 million principal and interest payment on May 1. The bank is negotiating with creditors about that deadline as the island seeks to reduce its $70 billion debt load.