Puerto Rico Defaults on $58 Million Debt Payment

It's not just Greece that's facing a debt crisis. There's one much closer to America. The government of Puerto Rico has confirmed that it failed to make a $58 million debt payment.

Puerto Rico made a partial payment of $628,000 in interest but could not afford to make the remainder, which was due Saturday. That's because the legislature did not appropriate the funds, according to Melba Acosta Febo, president of the Government Development Bank.

The government says it's not really a default, but Moody's Investor Service and others don't agree. They warn the failure to make that debt payment this weekend is just the first of broad defaults.

"This event is consistent with our belief that Puerto Rico does not have the resources to make all of its forthcoming debt payments," Emily Raimes, a vice president at Moody's, said. "This is a first in what we believe will be broad defaults on commonwealth debt."

The U.S. territory has $72 billion in public debt.