NEW YORK, Oct 20 (Reuters) - Puerto Rico’s Government Development Bank (GDB) has $1.9 billion in liquid assets including cash, bank deposits and unencumbered marketable U.S. government securities, the bank said in a statement dated October 19.
Puerto Rico has over $70 billion in debt and is struggling to produce its first balanced budget in years. The GDB’s liquidity position is important in assessing whether the U.S. commonwealth can meet its obligations.
The liquidity and cash flow update, part of an initiative to enhance public disclosure, reflected the bank’s position as of October 17. The GDB said it “expects to have sufficient liquidity during fiscal year 2015 to meet all its obligations and continue supporting Puerto Rico’s fiscal stability and economic growth.”
“We will continue to take affirmative measures to strengthen GDB’s liquidity in order for it to perform its statutory mission,” said the GDB’s interim president Jose Pagan Beauchamp.
Investors have complained recently about what they see as a lack of transparency in Puerto Rico’s finances. The new policy of posting regular liquidity updates appears to be an attempt to redress that.
Reporting by Edward Krudy; editing by Andrew Hay