Debt-riddled Puerto Rico paid all of its $1.9 billion in obligations due on Wednesday, sources told CNBC.
With the payments, the island, for the moment, avoided sinking further into financial crisis. Puerto Rico Gov. Alejandro Garcia Padilla recently called its roughly $73 billion in debt "not payable," fueling concerns among investors and bond insurers.
The National Public Finance Guarantee Corporation—an indirect subsidiary of MBIA—separately confirmed Wednesday that the island's struggling power utility, Prepa, and other Puerto Rico-related institutions made their debt-service payments.
"As a result, there were no claims on any of National's insurance policies," it said in a statement.