Control board: Puerto Rico needs to take emergency action
SAN JUAN, Puerto Rico (AP) -- A federal control board warned Wednesday that Puerto Rico's government needs to take "major emergency actions" to avoid shutting down because its cash flow is critically low.
The comments published in a letter to Gov. Ricardo Rossello are the sharpest yet made by a board that recently began overseeing the U.S. territory's finances.
The board released an audited financial statement that found this year's government expenses could be understated by $360 million to $810 million. It warned that Puerto Rico could face a $190 million cash deficit by July.
"Without major emergency actions, the Commonwealth soon will be unable to pay essential services, including pensions, education, health care and public safety in a matter of months," wrote board chairman Jose Carrion.
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