by Associated Press
SAN JUAN, Puerto Rico — Gov. Alejandro García Padilla announced Saturday that he has declared a state of emergency at the Government Development Bank, a moved aimed at ensuring that Puerto Ricans continue to receive essential government services.
The governor said he issued an executive order Friday to halt the erosion of the bank’s dwindling liquidity by allowing withdrawals only to fund necessary costs for health, public safety and education services. The order does not call for a moratorium on the bank’s principal or interest payments. García said the government bank, known as GDB, is in talks with creditors regarding a payment of nearly $423 million, due in May.