The Puerto Rico Public Finance Corp. is the only Puerto Rico public sector entity that will fail to make a bond or note payment due Friday.
Puerto Rico’s public sector entities have $60 million in bond and note payments due, according to a source at the Government Development Bank for Puerto Rico. The PFC owes $1 million.
The expected debt payments are: $2 million for general obligation, $10 million for the GDB, $3 million for the Public Building Authority, $15 million for the Sales Tax Financing Authority (COFINA), $14 million for the Infrastructure Finance Authority, $1 million for the Industrial Development Company, and $14 million for the Employee Retirement System.
The debt payments come amid the financial crisis that has prompted Gov. Alejandro García Padilla to ask the U.S. Congress to declare a moratorium on Puerto Rico’s payment of debt. Democrats and Republicans in Congress are debating proposals about how to deal with Puerto Rico’s financial crisis.
JPMorgan has reported that the next debt payment due from a Puerto Rico public sector entity is $1.3 million from the Puerto Rico Housing Finance Corp on April 15. Bloomberg has reported that the GDB owes $422 million on May 1. The governor has said that Puerto Rico will not make a full payment on this debt.
The Puerto Rico Public Finance Corp. was to pay $1 million on Friday. It stopped making payments on Aug. 1, 2015 and has missed several payments since. The PFC debt was subject to the appropriation of the government of Puerto Rico.
The official statement for the 2011 series A PFC bonds said on its first page: "The 2011 series A bonds will not constitute an obligation of the commonwealth or any of its public instrumentalities (other than the corporation), and neither the commonwealth nor any of its political subdivisions or public instrumentalities (other than the corporation) will be liable thereon."
