Puerto Rico Debt Rallies on Budget That Avoids Borrowing
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Prices on Puerto Rico’s junk-rated debt rose to the highest in almost three weeks after an official said Governor Alejandro Garcia Padilla plans to balance the next budget without deficit financing.
A spending plan that doesn’t include bond sales would be the first for the commonwealth in 20 years, said the official, Ingrid Vila Biaggi, the governor’s chief of staff. Garcia Padilla, who took office in 2013, will release as soon as today his proposed budget for the fiscal year beginning July 1. He’s set to give his State of the Commonwealth speech at 5:30 p.m. local time.