Dark clouds are hanging over Puerto Rico. Its projected 2013 deficit follows a likely 2012 deficit and twelve preceding deficits stretching back to 2000. The economy has not been generating sufficient tax revenue to support the services that the government has been providing to citizens. The difference has been made up by borrowing in the bond market and loans from the Puerto Rico Government Development Bank. Now the bond market gatekeepers, – credit ratings agencies – are waving the red flag.
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Last April saw the introduction of the LILA rules, which are used when people have smaller amounts of debt and income.
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Records began in 1960.
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