World Economy

Puerto Rico in Default

Puerto Rico  in Default Puerto Rico  in Default

The US territory of Puerto Rico has defaulted on a bond payment, according to ratings firm Moody’s, DW reported. The Caribbean island had been struggling with a debt crisis. The Government Development Bank of Puerto Rico confirmed that it had made only a partial payment of interest totaling $628,000 on a $58 million debt payment which had fallen due on August 1. “Due to the lack of appropriated funds for the fiscal year the entirety of the [Puerto Rico Public Finance Corporation] payment was not made today,” Government Development Bank president Melba Acosta Febo said in a statement. “This was a decision that reflects the serious concerns about the Commonwealth’s liquidity in combination with the balance of obligations to our creditors and the equally important obligations to the people of Puerto Rico to ensure the essential services they deserve are being maintained,” she said. Moody’s Investor Service deemed it to be a default as bondholders did not receive “full and timely payment” of debt services due on bonds issued by the Puerto Rico Public Finance Corporation.