Puerto Rico defaults on bonds for first time

Last Updated Aug 3, 2015 5:35 PM EDT

A Puerto Rico government agency defaulted on bonds on Monday as the commonwealth looks to redo agreements over its $72 billion debt.

Puerto Rico paid $628,000 on what was owed on securities sold by its Public Finance Corp. because lawmakers did not provide enough funds, Melba Acosta Febo, the president of the Caribbean island's Government Development Bank, said in a statement.

The partial payment "reflects the serious 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."

The amount paid was short of roughly $58 million in interest and principal that had been due.

Given the gap between the amount due and the payment made, credit reporting agency Moody's views the event as a default, according to published reports.