Two Large Puerto Rico Bondholders Demand Full Payment

Two mutual fund companies that hold Puerto Rico’s bonds have written to senior officials on the island, demanding full payment on bonds that defaulted early this week.

“The path that the current administration has chosen will steer Puerto Rico towards litigation and create further deterioration in the capital markets’ trust in Puerto Rico, potentially leading to years of economic turmoil,” the senior vice presidents of OppenheimerFunds and Franklin Advisers said in a joint letter on Thursday.

They addressed their demands to the president of the Puerto Rico Public Finance Corporation, which issued the bonds andfailed to make a $58 million debt payment on Monday. Copies of the letter were sent to executives and directors of the corporation’s parent, the Government Development Bank, which was the financial adviser on the bonds and directs much of the Puerto Rican government’s financial activity.

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