The Puerto Rican government has opened 600 accounts at a commercial bank in a desperate attempt to maintain essential services as the islands de facto finance authority teeters on the brink of default.
The move was seen as a quick fix for the Commonwealths Treasury and public agencies to protect themselves from the Government Development Bank for Puerto Rico (GDB) being declared insolvent, a person familiar with the matter said. The bank processes some government payrolls and supplier payments.
The person, who characterised the undertaking as creating a mirror of GDB accounts at a commercial bank, emphasised that the Treasury had not closed or transferred money out of the development b…
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