August 3, 2015
STATEMENT FROM GOVERNMENT DEVELOPMENT BANK
PRESIDENT MELBA ACOSTA FEBO ON THE SERVICE OF
PUBLIC FINANCE CORPORATION (PFC) BONDS
San Juan, P.R. – Today, Government Development Bank for Puerto Rico
(“GDB”) President Melba Acosta Febo issued the following statement on
the service of Public Finance Corporation (PFC) bonds:
“Due to the lack of appropriated funds for this fiscal year the entirety of the
PFC payment was not made today. This was a decision that reflects the se-
rious concerns about the Commonwealth’s liquidity in combination with the
balance of obligations to our creditors and the equally important obligations
to the people of Puerto Rico to ensure the essential services they deserve
are maintained.
“PFC did make a partial payment of interest in respect of its outstanding
bonds.The partial payment was made from funds remaining from prior le-
gislative appropriations in respect of the outstanding promissory notes se-
curing the PFC bonds. In accordance with the terms of these bonds, which
stipulate that these obligations are payable solely from funds specifically
appropriated by the Legislature, PFC applied these funds—totaling appro-
ximately $628,000—to the August 1 payment.”
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