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M. Continuo

Puerto Rico makes Dec 1 debt payment


    NEW YORK (Reuters) - Puerto Rico has made a Dec. 1 bond payment, avoiding a second default, but its liquidity position is severely constrained, the commonwealth's Government Development Bank said in a statement.

    There had been speculation that the U.S. territory would default on all or part of $355 million in notes issued by its financing arm, the Government Development Bank, and due Dec. 1. A default could have triggered lawsuits, further spooked investors and undermined the island's efforts to climb out of $72 billion in debt.

    (Reporting by Megan Davies; Editing by Lisa Von Ahn)