"The United States has five territories: Puerto Rico, American Samoa, CNMI [Commonwealth of the Northern Mariana Islands], Guam, and USVI [U.S. Virgin Islands]. The territories, like U.S. states in some cases, borrow through financial markets. Puerto Rico in particular has amassed large amounts of debt, and defaulted on billions of dollars of debt payments. In response to the fiscal crisis in Puerto Rico, Congress enacted and the President signed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) in June of 2016, which established an Oversight Board with broad powers of budgetary and financial control over Puerto Rico and requires GAO [Government Accountability Office] to study fiscal issues in all five U.S. territories. In this report, for each territory for fiscal years 2005-2015, GAO examined (1) trends in public debt and its composition, (2) trends in revenue and its composition, (3) the major reported drivers of the territory's public debt, and (4) what is known about the ability of each territory to repay public debt. GAO analyzed the territories' single audit reports; interviewed officials from the territories' governments, ratings agencies, and subject matter experts; and reviewed documents and prior GAO work."
|Publisher:||United States. Government Accountability Office|
|Retrieved From:||Government Accountability Office: http://www.gao.gov/|