Puerto Rico development bank warns of imminent government shutdown amid fiscal problems

Puerto Rico’s Government Development Bank says it is very likely the U.S. territory’s government could be forced to shut down in the next three months due to a lack of funds.

The bank issued the warning in a letter sent Tuesday to Gov. Alejandro Garcia Padilla and to the presidents of the island’s Senate and House of Representatives.

Bank officials say they don’t believe the government can access the capital market as planned given the island’s fiscal problems. They urge legislators to implement measures to cut costs and balance the budget as the island struggles with $73 billion in public debt.

A bank spokeswoman says no one is available for further comment.

Puerto Rico’s government partially shut down in May 2006 amid a budget shortfall resolved by an emergency loan.

What Next?

Recent Articles

Leave a Reply

You must be Logged in to post comment.