Risk Summary - Puerto Rico - JUNE 2014

POLITICAL RISK - Balanced Budget Proposed

Puerto Rico's governor, Alejandro García Padilla, rolled out a balanced budget on April 29. The proposed budget plan for the financial year, which begins July 1, focuses on spending cuts and 'revenue enhancement' measures to bolster the government's fiscal account. Officials said that a capital-improvement plan would also be announced, though details have yet to be released at the time of writing. Puerto Rico has over US$73bn in government debt, and is stepping up efforts to avoid restructuring amid weak fiscal revenue growth.

Puerto Rico has a Short-Term Political Risk Rating of 61 . 5 .

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