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Country Report Puerto Rico Product Image

Country Report Puerto Rico

  • ID: 2138738
  • April 2015
  • Region: Puerto Rico
  • 17 Pages
  • The Economist Intelligence Unit

On April 21st officials from the Government Development Bank (GDB) wrote to the governor, Alejandro García Padilla, and legislators, warning that the dire state of public finances could make a government shutdown "very probable" in the next three months.

The letter, signed by the GDB president, Melba Acosta Febo, and the finance minister, Juan Zaragoza, appears to have been designed to put pressure on the legislature to ease its resistance to passing sweeping tax reforms that are currently being debated. Pressure on the island's finances is building from all sides. Government efforts to borrow US$2.95bn appear unlikely to succeed, officials said, as the treasury's liquidity continues to fall. As at March 31st net liquidity stood at just over US$1.1bn, according to the GDB, down from US$1.9bn in October 2014. The bank forecasts that government will bring in US$3.4bn in revenue and spend US$2.47bn in the final quarter of the 2014/15 fiscal year, which ends in June. But revenue projections have habitually missed the mark.

On April 28th the treasury department announced that April's revenue from a gross receipts tax on companies will fall short by between US$100m and READ MORE >

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Country Report Puerto Rico

Officials warn of government shutdown
Event
Analysis
Impact on the forecast

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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