Puerto Rico will start to pay off principal and interest payments on its massive public debt on Jan. 1, 2016.

According to a release sent to Latin Post, the Government Development Bank (GDB) of Puerto Rico intends to make a payment of $10 million on its debt on Friday, Jan. 1 2016. Melba Acosta Febo, the president of the GDB, said the good faith payment signified the commitment the Puerto Rican people have to repaying their debts.

“Today’s decision reflects, yet again, the Commonwealth’s commitment to honoring its obligations in a manner consistent with the Puerto Rico Constitution and the provision of essential public services to the 3.5 million American citizens of Puerto Rico,” wrote Acosta Febo.

Acosta Febo explained that the payment would send a clear signal to Puerto Rico's stakeholders and creditors that the Commonwealth was committed to paying off its debts as soon as possible.

The ability for the U.S. territory to make the payment is partly part due to a redirection of funds. Puerto Rico will have to divert a total of $174 million from lower-grade bonds in order to pay off holders of the legally protected general obligation bonds.

As Puerto Rico makes its first payment of the new year, it has no choice but to default on nearly $174 million as well.

According to the New York Times, Gov. Alejandro García Padilla explained that certain payments, including $35.9 million owed to Infrastructure Financing Authority bondholder, would be stopped right away.

“We know that our creditors have spent a fortune lobbying against the people of Puerto Rico,” said García Padilla, adding, “My administration has the obligation to protect the people of Puerto Rico against the grave consequences of a disruption in essential services and a government shutdown, which would result from a wider default.”

This will mark the second the time Puerto Rico has defaulted in its history. The first time was earlier this year, in August 2015.

Speaking to CNN about the debt crisis, Gov. García Padilla was blunt about Puerto Rico’s ability to pay off its debts. "We're out of cash," he said.