The Puerto Rico Electric Power Authority said Monday that it reached agreements with banks allowing it to defer certain payments until the end of the month, giving breathing space to the cash-strapped utility, the Wall Street Journal reported today. The power authority said that it "may delay certain payments currently due until July 31, 2014," according to a news release yesterday. The two lenders, which provide lines of credit for fuel and other expenses, are Citibank and Scotiabank de Puerto Rico. The authority owed the two banks $671 million in obligations between the end of June and mid-August, according to Standard & Poor's Ratings Services. Puerto Rico has about $73 billion in total obligations, including those owed by its so-called public corporations, and has been struggling with unemployment more than twice the national average and a sluggish economy.
