The government of Puerto Rico on Tuesday dodged default on a key portion of its debt, but warned that the U.S. territory faces a "deteriorating liquidity situation" that may require "sacrifices" from creditors.

The Government Development Bank for Puerto Rico announced it paid the full $355 million in principal and interest payments that were due Tuesday. Much of this was "general obligation" debt, and a default on that debt may have triggered more financial instability.

But while the debt crisis was avoided for now, the bank warned that it was taking new steps to ensure future debt payments could be made.

"[T]he governor of Puerto Rico signed executive order No. OE-2015-46, which provides that the commonwealth will begin to redirect certain revenues in light of recently revised revenue estimates and its deteriorating liquidity situation," the bank said.

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