Puerto Rico defaults on $58 million bond payment

Puerto Rico has defaulted for the first time in the commonwealth government's history after missing most of a $58 million bond payment.

"Due to the lack of appropriated funds for this fiscal year the entirety of the PFC (Public Finance Corporation) payment was not made today," said Melba Acosta Febo, the president of the Government Development Bank for Puerto Rico. "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 maintained."

Febo said the PFC was only able to pay approximately $628,000 out of the $58 million. The commonwealth owes about $72 billion to its creditors and the financial crisis could become one of the largest restructurings in the history of the $3.7 trillion market for debt sold by U.S. state and local governments.

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