Debt-ridden Puerto Rico is facing a marked slowdown in new revenues, and even under a best-case economic growth scenario would be able to make just a fraction of the loan payments due over the next decade, officials said Monday.
Revised figures from the government’s fiscal and economic recovery plan show that the commonwealth’s long-running recession and fiscal crisis have crippled tax revenues and left the island in a ever-worsening cash-flow situation, even as it has slowed payments to suppliers, creditors and taxpayers due refunds.
The result is that Puerto Rico is sinking deeper into a fiscal hole that officials there said can only be filled with the help of comprehensive debt restructuring — which they have been pushing for many months, but to no avail.
“The information contained in the updated plan makes all the more clear that actions must be taken before the Commonwealth runs out of options to pay its debt and provide essential services to the people of Puerto Rico,” said Melba Acosta Febo, president of the island’s Government Development Bank.
The disclosure by Puerto Rico officials, which comes shortly before a meeting with creditors, seems to be aimed at prodding bondholders