Puerto Rico's Own Deficit Forecast Seen High by Morgan Stanley
- Debt trading team sees lower deficit than 2 official forecasts
- Creditors would fare worse from higher deficit estimate
The Controversy Behind Puerto Rico's Debt Problems
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Puerto Rico officials have overestimated the U.S. territory’s anticipated budget deficit over the next five years by about 60 percent, according to an analysis by Morgan Stanley’s debt-trading team.
Puerto Rico will be confronted with a $5.57 billion financing gap through its fiscal year in 2020, according to a report distributed Sept. 11 by Ryan Brady, an analyst on Morgan Stanley municipal-debt trading desk in New York. That’s less than the $14 billion shortfall the Puerto Rico government estimated in its banner restructuring and economic plan released this week.