Public debt of Puerto Rico

The distribution of Puerto Rico's outstanding debt.

The public debt of Puerto Rico is the money borrowed by the government of Puerto Rico through the issue of securities by the Government Development Bank and other government agencies. The actual debt is about $164.7 billion USD or about 150% of Puerto Rico's gross domestic product (GDP).[1][2][3][4][5][6] By October 2013 the debt had ballooned to $191 billion not including pensions.[7]

History

In May 2007, local economists expressed serious concerns when it was revealed that the Puerto Rico public debt equaled to 76% of its gross national product (GNP), making it one of the most indebted countries by percentage in the world, even more than the United States.[8]

Economists have criticized the government's fiscal policy, whose level of expenditures and indebtness has increased significantly within the past decade while the economy was grown at a much slower pace. Between 2000 and 2006 alone, Puerto Rico's GNP rose 5.37%, while its public debt's relation to GNP rose 18%.[8]

See also

References

  1. ↑ Méndez, Jesús; Chevres, Jaysel (2011), Comprehensive Annual Financial Report Year Ended June 30, 2011 (PDF), Department of Treasury of Puerto Rico, p. 19, retrieved 25 November 2012
  2. ↑ Concluyen vista pública de transición del gobierno - El Nuevo Día
  3. ↑ Banco Gubernamental de Fomento para Puerto Rico
  4. ↑ Banco Gubernamental de Fomento para Puerto Rico
  5. ↑ http://www.gdb-pur.net/spa/investors_resources/documents/2011-07-12-DeudaPublicaDic2010-GS.pdf
  6. ↑ http://www.gdb-pur.net/investors_resources/documents/InformeDeudaPublica2010-GS.pdf
  7. ↑ Walsh, Mary. "Worsening Debt Crisis Threatens Puerto Rico". New York Times. Retrieved 9 October 2013.
  8. 1 2 Debe Puerto Rico 76 centavos de cada dólar by Joanisabel González, El Nuevo Día, May 5, 2007, accessed May 5, 2007 (Spanish)
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