Puerto Rico

Puerto Rico enters new financial era after historic default

Puerto Rico entered a new financial era Friday following a historic default as it prepares for the implementation of a federal oversight board that will have control over the island's dire finances and provide room to ease a crushing debt burden.

The government paid roughly half of $2 billion in due debt, but said it did not have the money to pay $779 million worth of general obligation bonds that are given top priority by the island's constitution. Gov. Alejandro Garcia Padilla signed an executive order Thursday declaring a moratorium on a portion of that debt.

"Even if I had shut down the government, we wouldn't have had enough money to make the payment,"...