Governor: Puerto Rico to make $594M bond payment, default on $37M in interest

Puerto Rico's governor says the U.S. territory will make a $594 million bond payment due next week but default on $37 million in interest.

Gov. Alejandro Garcia Padilla said Wednesday that the payment includes $329 million in general obligation bonds. He said there is no money to make a $400 million payment in May in Government Development Bank bonds.

The island is struggling with $72 billion in public debt that Garcia has said is unpayable and needs restructuring. The government has no access to local or federal bankruptcy laws.

Puerto Rico recently made a $354 million bond payment, but the island's Public Finance Corporation missed a $58 million bond payment in August.