Puerto Rico Gov. Ricardo Rossell- has said that he is setting aside $146 million for the payment of general obligation bonds.
The governor made the remark Thursday in a speech to the Association of Puerto Rico Industrialists.
He also said he plans to pay off GO holders owed $1.3 million because the commonwealth defaulted on Feb. 1 GO payment of this size.
The $146 million of funds would come from "claw back" funds. The Puerto Rico government uses this term for the diversion of revenue streams that had supported other bonds.
Rossell- said the $146 million would be held in an account at Banco Popular, ready to be used for future G.O. payments.
In his speech the governor said the money hadn't been "destined" to be used for essential services for Puerto Rico's people.
Starting on Dec. 1, 2015, then Puerto Rico Gov. Alejandro García Padilla said that he was ordering a claw back of revenues that had been pledged to certain bond issues in order to maintain essential public services.
Rossell- hasn't indicated whether he's decided to shift the movement of claw back revenues away from the General Fund and to payment of GO bonds. Rossell- administration officials didn't answer a question as to which bond revenues were being clawed back.
Puerto Rico has been defaulting on its GO bonds since July 1, when it failed to make a $779 million payment.
