Puerto Rico's revenues rise 4.4 percent in third quarter

Reuters

Oct 7 (Reuters) - Puerto Rico's revenues for the threemonths through September rose by $70 million, or 4.4 percent,over the same period a year ago to a provisional $1.68 billion,the island's treasury secretary said on Monday.

The revenues, which jumped 18 percent in the month ofSeptember alone, still came in $7 million below current budgetestimates for the quarter.

The new budget for Puerto Rico is based on a large increasein revenues for the 12 months through June 2014, the result ofmassive tax hikes aimed at easing worries among municipal bondinvestors. The budget has a deficit of more than $800 million.

"We feel confident about our preliminary first quarter FY2014 revenue growth," Treasury Secretary Melba Acosta Febo saidin a statement.

"The preliminary figures demonstrate the results of the newtax legislation and the significant fiscal responsibilitymeasures we've adopted," Acosta Febo said.

Yields on the debt recently peaked above 10 percent asinterest rates have risen across the markets.

The government, a major issuer of municipal debt, saidprivately placed short-term deals would help keep financingcosts at bay while recently enacted reforms, such as tax hikesand a reform of the main pension system, will start having apositive effect on the budget.

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