Puerto Rico will defualt for a second time this year by skipping payments on part of its debt due on Monday, NBC News reported, but the most important debt will not go unpaid.
The Caribbean island will pay $328.7 million in general obligation (GO) debt due on Jan. 4, the governor told reporters at a news conference. Default on GO debt would have been seen as a more serious move because those bonds have the strongest legal protections of any of the island's obligations.
As Puerto Rico's financial situation deteriorates, officials there are meeting with creditors in early January.
When asked about the shutdown of key government services, Governor Alejandro Garcia Padilla told reporters, "We have to do all we can to avoid that situation."
