SAN JUAN, Puerto Rico (AP) — Puerto Rico has narrowly avoided a multimillion-dollar default by announcing a last-minute bond payment.
Still, Gov. Alejandro Garcia Padilla testified at a hearing of the U.S. Senate Judiciary Committee that the island is facing a liquidity crunch. He says the government has no cash left.
Puerto Rico officials have not yet said where they obtained the money to make the $355 million payment due Tuesday. Garcia signed an executive order that allows the island's Treasury Department to retain certain revenues slated for specific public agencies to help pay Puerto Rico's debt.