Fiscal Outlook Remains Key Concern

BMI View: Faced with growing popular discontent in the run-up to November's gubernatorial elections, Governor Aníbal Acevedo Vilá has vowed sweeping tax relief to hard-up Puerto Ricans in order to shore up his bid for re-election. While such populist policies will be warmly welcomed at a time when living costs continue to rise, we warn that widespread tax cuts would further exacerbate the Commonwealth's deteriorating fiscal position and would not be looked upon too kindly by the major ratings agencies.

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