Puerto Rico likely to cut services or default by year’s end

Puerto Rico’s government will likely have to cut back on public services or default on debts before the end of the year because it is running out of cash, the Government Development Bank said in a financial filing. Putting numbers to a warning this summer from Gov. Alejandro Garcia Padilla, the filing late Friday said the U.S. territory had a $370

million overdraft as of Sept. 30 and burned through a $400 million emergency loan from a group of public corporations to keep government operating. It also cut revenue estimates for the current fiscal year by $355 million because of weaker than expected collections. The development bank, which has been the lender of last resort for the island’s cash-strapped government, may be insolvent by year’s end, the report added.

via ynetnews.com

Source: http://www.ynetnews.com/articles/0,7340,L-4722231,00.html

Leave a Reply

Your email address will not be published. Required fields are marked *