The Puerto Rico Electric Power Authority is getting a short extension on line-of-credit payments that had been due in early July.
According to Standard & Poor's, PREPA owes Citibank $146 million for a line of credit. PREPA was supposed to start paying it back with a $10 million payment on July 3. PREPA was supposed to complete the repayment in mid-August.
On Monday a spokeswoman for Puerto Rico announced that PREPA had negotiated a delay with its "lenders." PREPA also owes $525 million to Scotiabank de Puerto Rico for a line of credit. This was to be paid back on Aug. 14, according to S&P.
PREPA's lenders "have agreed to not exercise remedies as a result of credit downgrades and other events. Under the agreements, PREPA may delay certain payments currently due until July 31, 2014," the spokeswoman said.
"Over the next few weeks, PREPA will continue discussions with the lenders and will use this period to evaluate various alternatives to improve its financial situation," the spokeswoman said.
