Home Local News GDB: Highways won’t default on bonds
Issued : Friday, May 10, 2013 05:49 AM
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GDB: Highways won’t default on bonds

By CB Online Staff

Puerto Rico Government Development Bank President Javier Ferrer is denying reports that the Puerto Rico Highways & Transportation Authority is on track to default on a bond payment due in July.

"The Puerto Rico Highways & Transportation Authority (HTA) will not default on the payment due on its bonds payable on July 1," Ferrer said.

"The funds are on deposit with the trustee and will be paid to bondholders as always," he added. "The indenture is structured as a gross pledge which requires that monies generated by the HTA are first used to pay debt service on its outstanding bonds."

Ferrer was commenting on press reports that the Highways & Transportation Authority, which owes bondholders roughly $355 million by the end of the fiscal year June 30, could start missing payments this month.

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