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Puerto Rico reassesses financing plan amid cut in bond sales

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(Globalpost/GlobalPost)

SAN JUAN, Puerto Rico - Puerto Rico is crafting a new financing plan as it seeks to reassure investors that it will not default on its obligations after announcing cuts in bond sales amid concerns about a record yield.

The Government Development Bank said this week it is taking steps such as strengthening its liquidity through private deals in a bid to return to the market in upcoming months.

The move comes after a more than 10 per cent yield on Puerto Rico bonds led the bank to reduce debt issuance to between $500 million and $1.2 billion.

Economist Gustavo Velez told The Associated Press Friday that Puerto Rico will not default in the short term, but that it needs to figure out how to pay its $70 billion debt in the long term.

http://www.globalpost.com/dispatch/news/the-canadian-press/130913/puerto-rico-reassesses-financing-plan-amid-cut-bond-sales