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Puerto Rico approves measures to manage debt load

Puerto Rico's Senate has approved several measures to help the U.S. territory increase its borrowing capacity and better manage a $70 billion public debt load that has worried investors.

One measure would create a corporation responsible for issuing bonds to help refinance some of the $590 million in debt held by the island's municipalities. The corporation would use a portion of revenues generated through an existing sales and use tax to guarantee payment.

Another measure would create a special fund for those revenues that would be overseen by the Government Development Bank.

(Read more: White House: No bailout for Puerto Rico)

A vacant building in the Santurce neighborhood of San Juan, Puerto Rico.
Getty Images
A vacant building in the Santurce neighborhood of San Juan, Puerto Rico.

Legislators approved the measures late Thursday, saying the bills also would improve the liquidity of the Government Development Bank as it prepares to re-enter the bond market.

The island's governor is expected to sign the measures soon.

By The Associated Press

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