SAN JUAN, June 24 New York Federal Reserve Bank
President William Dudley warned Puerto Rico about its growing
debt load and questioned if the island can sustain its high
level of borrowing in the future in remarks prepared for
delivery on Tuesday.
"Persistent deficits in the Commonwealth's fiscal accounts
as well as mounting deficits in the operation of the several
major public corporations have substantially raised the Island's
overall level of public debt and led to serious concerns about
whether the Island's fiscal position is sustainable," he said,
according to a copy of the remarks.
He added that the bank is working on a report that will
"examine the factors leading to the sizeable buildup of public
debt on the Island and the key variables that will determine its
Earlier this year, Puerto Rico sold $3.5 billion bonds in
the largest junk deal ever in the U.S. municipal bond market.
(Reporting By Reuters in San Juan, Writing by Lisa Lambert in
Washington; Editing by Meredith Mazzilli)