Puerto Rico reassesses financing plan amid cut in bond sales

Puerto Rico is crafting a new financing plan as it seeks to reassure investors that it will not default on its obligations after announcing cuts in bond sales amid concerns about a record yield.

The Government Development Bank said this week it is taking steps such as strengthening its liquidity through private deals in a bid to return to the market in upcoming months.

The move comes after a more than 10 percent yield on Puerto Rico bonds led the bank to reduce debt issuance to between $500 million and $1.2 billion.

Economist Gustavo Velez told The Associated Press Friday that Puerto Rico will not default in the short term, but that it needs to figure out how to pay its $70 billion debt in the long term.