Puerto Rico’s Government Development Bank, which oversees the island’s finances, said it may fail to comply with legal reserve requirements by the end of December, putting the bank at risk of falling into receivership, Bloomberg reported. Puerto Rico’s Commissioner of Financial Institutions is examining the financial condition of the GDB, according to the commonwealth’s most recent financial disclosure, posted on the bank’s website late Friday. The GDB serves as a source of liquidity for the Caribbean island and its municipalities. The bank estimates it may fall short of its legal reserve requirement by the end of 2015, according to the filing. That would put the bank in danger of operating under a receiver and further limit the commonwealth’s access to funds.
