BondBuyer – Puerto Rico General Fund collections lag projections

Excerpt from…

Puerto Rico General Fund collections lag projections

By Robert Slavin – The Bond Buyer
July 08, 2020

Shaun Burgess of Cumberland Advisors

Puerto Rico General Fund collections were lagging by 7.5% to 16.8% as of four days before the end of the fiscal year, depending on which measures are used.

The figures are derived from a weekly cash-flow report released by the Puerto Rico Department of Treasury and Puerto Rico Fiscal Agency and Financial Advisory Authority on Tuesday. The report covered information as of June 26.

Puerto Rico commentator Cate Long tweeted, “Puerto Rico central government revenues fall just 7% short of projections after government postponed usually massive April income tax filing deadline, cut sales taxes & economy was shut since late March. Remarkable performance that bodes well for rebound.”

Cumberland Advisors Portfolio Manager and Analyst Shaun Burgess said he finds it “unsurprising that revenues have shown a steep decline. This is the story playing out all over the country as a result of the COVID-19 pandemic. It is disappointing as the commonwealth was seeing welcome economic improvements prior to the pandemic. Fortunately, the island is receiving billions in federal aid between the pandemic and natural disasters so those funds should help cushion the damage.”

Cumberland owns insured Puerto Rico debt.

Read the full article with subscription (paywall) at The Bond Buyer website.

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