Board: Puerto Rico needs to take emergency action

A federal control board says Puerto Rico needs to take "major emergency actions" because its cash flow is critically low.

The comments published in a letter Wednesday are the sharpest yet made by the board 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 up to $810 million. It warned that Puerto Rico could face a $190 million cash deficit by July and that the government will not be able to pay for essential services if it does not implement immediate measures to cut costs.

The warning comes ahead of a meeting on Monday where the board is expected to approve a fiscal plan that many believe will be amended to include austerity measures.