The Americas

Puerto Rico freezes tax credits, $1.8B in funds amid crisis

Puerto Rico's government says it is freezing all future tax credits and nearly $2 billion in funds for special assignments to help improve cash flow amid a decade-long recession.

They are the latest measures taking effect as a federal control board gets ready to approve a fiscal plan many believe will include austerity measures.

Officials said Tuesday they will evaluate about $140 million worth of tax credits to determine which ones would best help the U.S. territory's economy. The credits chosen will be paid over four years.

Authorities said they also are freezing $1.8 billion in funds set aside in recent years for items including consulting services, cultural trips and sporting events. A committee will determine which of those items they will get rid of to save $625 million.