|Governor Alejandro Garcia Padilla; "Puerto Rico is bankrupt"|
Puerto Rico has begun to default on its debt in order to pay top-priority borrowing, Governor Alejandro Garcia Padilla said this morning.
The status of a December 1 $355 million in note payments due remained unclear.
Of the $355 million of GDB debt service due Dec. 1, $81.4 million is non-general obligation-backed debt and $273.3 million are notes backed by the commonwealth's general obligation guarantee.
There is speculation some or all of it will not be paid.
This is only the beginning.
The island's government and associated agencies have $72 billion in debt outstanding.
In a written statement, Garcia Padilla said: "In simple terms, we have begun to default on our debt in an effort to attempt to repay bonds issued with the full faith and credit of the commonwealth and secure sufficient resources to protect the life, health, safety and welfare of the people of Puerto Rico."