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Puerto Rico governor authorizes suspension of public debt payments

Puerto Rico's Governor Alejandro Garcia Padilla (C), talks to journalists in Havana, Cuba, June 4, 2016. REUTERS/Alexandre Meneghini

SAN JUAN (Reuters) - Puerto Rican Governor Alejandro Garcia Padilla on Thursday issued an executive order authorizing the suspension of payment on approximately $800 million worth of constitutionally-guaranteed general obligation bonds due on July 1.

The suspension follows U.S. President Barack Obama’s signing into law earlier on Thursday of a plan that gives a federal oversight board authority for negotiating the restructuring of the island’s $70 billion debt and bringing the struggling U.S. territory’s finances under control.

Reporting by Nick Brown in San Juan; editing by Daniel Bases and G Crosse