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Puerto Rico Avoids Default


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Puerto Rico Avoids Default

Jubilee USA

WASHINGTON - Puerto Rico surprised some analysts by making a scheduled $354 million debt payment and avoiding a default. In an announcement, the island's Government Development Bank said it had "paid all principle and interest payments due today on certain outstanding [debt]." Puerto Rico Governor Alejandro Garcia Padilla announced at a Senate Judiciary Committee hearing in Washington that the island's government will "claw-back" revenues designated to pay certain debts to instead pay for government services. "We have no cash left," Padilla told the committee.

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