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Puerto Rico

Puerto Rico fails to make $58-million debt payment

The government of Puerto Rico confirmed Monday that it had failed to make a $58-million debt payment, a significant escalation of the fiscal crisis facing the U.S. island territory. Puerto Rico made a partial payment of $628,000 in interest but could not afford to make the remainder, which was due Saturday, because the Legislature did not appropriate the funds, said Melba Acosta Febo, president of the Government Development Bank. The government had warned that it would not make the payment and argued that it should not be considered a default under a technical definition of the term, an argument rejected by Moody's Investors Service and others. "This event is consistent...