NEW YORK, May 15 (Reuters) - An agreement by Puerto Rico lawmakers on new revenue-boosting tax measures is a “positive development” for a financing deal of up to $2.95 billion, a source close to Puerto Rico’s general obligation bondholders said Friday.
Lawmakers of Puerto Rico’s governing Popular Democratic Party (PDP) agreed to raise the sales tax to 11.5 percent from 7 percent in a meeting late on Thursday. Officials said the measure, which still needs to be ratified by the legislature, will boost revenues by $1.2 billion.
The source, who spoke on condition of anonymity as the deal is still tentative, said a bond sale would take at least a month to bring to market following ratification of the tax measures. (Reporting by Edward Krudy)