Puerto Rico going down to the wire on $355M debt payment

Staff Writer
Columbus CEO

SAN JUAN, Puerto Rico (AP) — Debt-burdened Puerto Rico is struggling to make a looming $355 million bond payment.

Gov. Alejandro Garcia Padilla says he can't yet say for certain whether the Government Development Bank will make payments due Tuesday.

He told reporters Monday that the answer will depend on what comes out of negotiations with island creditors.

The GDB has warning for weeks that it was in danger of running out of money by the end of the year. The government has been withholding payments to suppliers and tax rebates to preserve cash flow.

Failure to make the payment would be an ominous turn for the territory. The island has a shrinking economy and a total public debt of $72 billion that Garcia has previously described as unpayable without a restructuring.