Puerto Rico Ten-Year Deficit Forecast Raised to $68 Billion
- Projection is higher than governor’s previous estimates
- Board wants to reach voluntary agreement with creditors
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Puerto Rico is facing a budget shortfall of $67.5 billion over the next decade, almost $10 billion more than previously projected by Governor Alejandro Garcia Padilla, underscoring the need for the island to cut its debts and turn around the faltering economy.
The forecast was released Tuesday by the U.S. board that was installed after the territory’s worsening fiscal crisis led it to default on a growing share of its $70 billion debt. The seven-member panel said it plans to restart negotiations with creditors this week, seeking to secure a voluntary agreement with bondholders instead of imposing losses on them in court.