Puerto Rico Warns Of Imminent Government Shutdown Due To "Liquidity Crisis"

"Two months ago, when Puerto Rico’s third largest bank failed costing US taxpayers some $750 million in the process, we noted that Doral Bank wasn’t alone in the world when it comes to having an NPL ratio bordering on 40%:

“It appears that at least in some ways, "Puerto Rico is indeed Greece,” we said. 

Less than 60 days later it appears that Puerto Rico is indeed Greece in a lot of ways because as Reuters reports, the U.S. territory faces a looming government shutdown thanks to “the absence of liquidity to operate.” 

Puerto Rico's top finance officials said the government of the U.S. territory will likely shutdown in three months because of a looming liquidity crisis and warned of a devastating impact on the island's economy.

In a letter to leading lawmakers, including Governor Alejandro Padilla, the officials said a financing deal that could potentially salvage the government's finances currently looked unlikely to succeed. It warned of laying off government employees and reducing public services

"A government shutdown is very probable in the next three months due to the absence of liquidity to operate," the officials said. "The likelihood of completing a market transaction to finance the government's operations and keep the government open is currently remote."

at  http://www.zerohedge.com/news/2015-04-24/puerto-rico-warns-imminent-government-shutdown-due-liquidity-crisis