NEW YORK, July 1 (Reuters) - A payment on Puerto Rico’s general obligation bonds due on July 1 is in the process of being made, holders of the debt said on Wednesday, alleviating fears of an imminent default.
One fund manager said that his custodian bank had confirmed the payments would be made today, although the payments had not arrived by late afternoon. “It is not the same as saying the money is in the bank,” he said.
Reuters reported on Tuesday that Puerto Rico would make the payment, amounting to around $645 million, citing a source with knowledge of the transaction.
A spokesman for the Government Development Bank (GDB), the U.S. territory’s financing arm, did not immediately return a request for comment. (Reporting by Edward Krudy; Editing by Alan Crosby)