Puerto Rico GDB Paid All Principal, Interest Payments Due Today

(Updated - December 1, 2015 11:54 AM EST)

Puerto Rico GDB paid all principal, interest payments due today, according to Bloomberg.

UPDATE - The following statement was issued on Tuesday:

The Government Development Bank for Puerto Rico (“GDB”) today announced that it paid all principal and interest payments due today on certain outstanding GDB Notes. In addition, the Governor of Puerto Rico signed Executive Order No. OE-2015-46 (the “Executive Order”), which provides that the Commonwealth will begin to redirect certain revenues in light of recently revised revenue estimates and its deteriorating liquidity situation. Pursuant to the Executive Order, certain available revenues that have been budgeted to pay debt service on the debt of certain public corporations may be redirected, pursuant to constitutional requirements, to pay “public debt” (debt issued or guaranteed by the Commonwealth).

Pursuant to the Executive Order, the Secretary of the Treasury may retain, for the application to payments due on the Commonwealth’s “public debt,” certain revenues assigned to particular public corporations which, by law, constitute “available resources” subject to the Commonwealth’s priority provisions set forth in the Constitution.

“Today’s debt service payments reflect our commitment to honor our obligations notwithstanding the extreme fiscal challenges we face in an effort to facilitate a voluntary restructuring process with our creditors,” said GDB President Melba Acosta Febo. “However, make no mistake, Puerto Rico’s liquidity position is severely constrained at this time despite the extraordinary measures the Government has taken to improve it.“

“We hope today serves as a clear indication that intend to honor our obligations to the extent possible without interrupting essential public services. However, the Commonwealth’s overall fiscal positions remains tenuous. In the following weeks, we will continue to have discussions with our creditors about supporting the creation of a sustainable path forward for the Commonwealth. To succeed, this course of action entails shared sacrifices from all our stakeholders, including our creditors.”

“We also continue to call upon Congress to act responsively and provide Puerto Rico with the help it needs, in particular, in the form of an orderly bankruptcy regime under which Puerto Rico may seek relief. If Congress fails to provide a legal framework for debt relief, the chances of reaching a successful outcome will diminish significantly. Failure by the Commonwealth to secure debt relief will harm all stakeholders, including our creditors, and may result in a real humanitarian crisis for more than 3.5 million American citizens.”

You May Also Be Interested In

• This Magnificent 7 stock is a Top Pick at Jefferies on 'discounted valuation'
• Wall Street banks warn sticky core inflation may keep Fed hike odds elevated
• Barclays raises Richemont price target ahead of Q1 update, expects strong jewellery growth