Sept 6 Puerto Rico's virtually insolvent Government Development Bank missed $9.9 million in interest payments on several series of 2010 and 2011 senior notes, the bank said in a regulatory filing on Tuesday.
The decision to skip the payment, which was due on Sept. 1, was expected under an executive order signed in April by Puerto Rico Governor Alejandro Garcia Padilla imposing a moratorium on GDB debt payments as the bank -- and Puerto Rico as a whole -- works out its debt problems.
The island faces $70 billion in debt and a 45 percent poverty rate, and its finances have been taken over by a federally-appointed board.
Nearly $4 billion of the debt belongs to GDB, which is virtually insolvent and could be wound down. Its role as the island's chief fiscal agent, which included running debt restructuring talks with island creditors, has been assigned to a newly-created public agency. (Reporting by Nick Brown; Editing by Alistair Bell)
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