World

Governor of Puerto Rico declares state of emergency at the government bank

SAN JUAN, PUERTO RICO- APRIL 25: Colorful homes line the cobblestoned streets April 25, 2004 in Old San Juan, the original capital city of San Juan, Puerto Rico. The old city is a historic district of seven square blocks made up of ancient buildings and colonial homes, massive stone walls and vast fortifications, sunny parks and cobblestoned streets.  (Photo by Joe Raedle/Getty Images)

SAN JUAN, PUERTO RICO- APRIL 25: Colorful homes line the cobblestoned streets April 25, 2004 in Old San Juan, the original capital city of San Juan, Puerto Rico. The old city is a historic district of seven square blocks made up of ancient buildings and colonial homes, massive stone walls and vast fortifications, sunny parks and cobblestoned streets. (Photo by Joe Raedle/Getty Images)  (2004 Getty Images)

Gov. Alejandro Garcia Padilla says he is moving to protect Puerto Rico's residents through an executive order that declares a state of emergency at the Government Development Bank.

The governor issued an executive order that protects the bank's dwindling liquidity by only allowing withdrawals that fund the delivery of essential public services. It does not call for a moratorium on the government bank principal or interest payments. Garcia said the bank is in talks with creditors regarding a $423 million due May 1.

The order Saturday was the first taken under the Puerto Rico Emergency Moratorium and Financial Rehabilitation Act enacted last week. The law provides emergency powers to the governor including the ability to declare a moratorium on all bond payments.

Like us on Facebook
Follow us on Twitter & Instagram

More On This...