Puerto Rico bank sees drop in liquidity amid economic crisis

SAN JUAN, Puerto Rico (AP) — The government bank responsible for issuing Puerto Rico’s bonds says its liquidity has dropped below $1 billion as concerns grow it won’t be able to make a large bond payment due soon amid the U.S. territory’s economic crisis.

The Government Development Bank said Wednesday that its liquidity stood at $875 million at the end of September.

The announcement comes a day after the bank’s president and other government officials met with advisers of Puerto Rico bondholder groups as the territory’s administration seeks to restructure a $72 billion public debt that the governor has said is unpayable and needs restructuring.

Investors and economists are now questioning whether the bank will be able to meet a $355 million bond payment due Dec. 1 given its dwindling funds.

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