World Economy

Puerto Rico Suspends Payments

Puerto Rico Suspends PaymentsPuerto Rico Suspends Payments

Puerto Rican Governor Alejandro Garcia Padilla late on Friday declared a suspension of any payment on some debt issued by the US territory’s infrastructure financing authority, citing the authority granted under a local emergency debt moratorium law, Reuters reported. “With this action, all obligations to transfer revenues or funds related to the Puerto Rico Financing Authority BANs (bond anticipation notes) are suspended,” the statement said. Puerto Rico, with 3.5 million US citizens, a 45% poverty rate and rising emigration to the mainland that cuts into economic growth, has $70 billion worth of debt it says it cannot repay in full.