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Puerto Rico Oversight Board Sees Projected Surplus Plummeting

  • Member says forecast for 30-year surplus to be cut to $14 bln
  • Shift prompted by rejection of overhaul to island’s labor law
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Photographer: Erika P. Rodriguez/Bloomberg

A member of Puerto Rico’s federal oversight board said it’s drastically reducing its forecast for the government’s budget surplus over the next three decades after lawmakers balked at labor-law changes the overseers want to encourage investment in the bankrupt territory.

Ana Matosantos, a member of the eight-member board installed by U.S. lawmakers, said the body now expects a $14 billion cumulative primary surplus over 30 years, as opposed to a previous projection for a $39 billion surplus. Speaking to the press in San Juan Friday, she said that figure was included in a new fiscal plan the board was re-certifying.