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Puerto Rica in default after missing debt payment

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Puerto Rica in default after missing debt payment

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It is the most indebted territory or state per capita in the United States and now Puerto Rica is in default.

The government has confirmed it failed to make a debt payment of 50 million dollars – around 35 million euros – due on bonds as it did not have the funds available.

The ratings agency Moody’s said it viewed the development as a default.

The US commonwealth paid only 628,000 dollars of a 58 million dollar payment due on its Public Finance Corp bonds.

In a statement the Government Bank President Melba Acosta Febo said it was because the legislature did not appropriate sufficient funds.