Puerto Rico Warns of More Defaults After Missing May Payment
- Governor says island can't afford to meet July obligations
- General obligation default would likely trigger lawsuits
Puerto Rico Risks Danger of Further Bond Defaults
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Governor Alejandro Garcia Padilla warned that Puerto Rico bond investors face a cascade of defaults starting in July unless Congress passes legislation that facilitates a restructuring of the commonwealth’s debt.
The exhortation made Monday in San Juan came a day after Garcia Padilla announced a moratorium on the payment of $400 million in Government Development Bank debt that matured Sunday. The governor said he was choosing to focus on providing essential services as the commonwealth’s financial crisis worsens, rather then to pay creditors. The default is the biggest yet by the island.
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Puerto Rico Warns of More Defaults After Missing May Payment