Is Puerto Rico Going Bankrupt?

Despite its shaky economy, Puerto Rico's government is denying claims that it is headed for bankruptcy.

"There seems to be a lot of misinformation out there," said Jose Coleman, executive vice president of the Government Development Bank. "Bankruptcy is completely out of the question concerning Puerto Rico."

According to the Huffington Post, Gov. Alejandro Garcia Padilla assured investors on Tuesday that Puerto Rico would not need U.S. federal intervention nor would it default on its debts.

"We will do everything, and I repeat, everything that is necessary for Puerto Rico to honor all its commitments," Padilla said. "It's not only a constitutional but also a moral obligation."

ABC News reports that Treasury Secretary Melba Acosta said rumors about the U.S. government intervening to help alleviate Puerto Rico's financial crisis are simply not true, but that U.S. officials are seeking to set up a committee that would help figure out ways to boost La Isla del Encanto's economy.

Acosta said the government would cut its $820 million budget deficit in half by 2015 and officials made sure to note that the deficit has already been reduced from $2.4 billion.