Puerto Rico filing says government likely to cut services or default on debt before year's end

Puerto Rico's government says it will likely have to cut back on public services or default on debts before the end of the year because it is running out of cash.

The Government Development Bank said in a financial filing late Friday night that the U.S. territory had a $370 million overdraft as of Sept. 30 and burned through a $400 million emergency loan from a group of public corporations to keep government operating. It also cut revenue estimates for the current fiscal year by $355 million because of weaker than expected collections.

Officials are considering reducing employee work schedules by two days a week but warn the government may have to default on debt payments to maintain essential services.

Puerto Rico filing says government likely to cut services or default on debt before year's end