Puerto Rico Gov. Alejandro Garcia Padilla speaks during a state of the commonwealth address at the Capitol building in San Juan, Puerto Rico, Thursday, April 25, 2013.

Puer­to Rico Gov. Ale­jan­dro Gar­cia Padil­la speaks dur­ing a state of the com­mon­wealth address at the Capi­tol build­ing in San Juan, Puer­to Rico, Thurs­day, April 25, 2013.

SAN JUAN, Puer­to Rico — SAN JUAN, Puer­to Rico (AP) — The gov­ern­ment of Puer­to Rico denied Tues­day that it is near bank­rupt­cy or might need U.S. fed­er­al inter­ven­tion, offer­ing those assur­ances dur­ing a con­fer­ence call with investors aimed at alle­vi­at­ing con­cerns about a recent cut in planned bond sales and the island’s con­tin­u­ing finan­cial cri­sis.

Gov. Ale­jan­dro Gar­cia Padil­la said that the U.S. ter­ri­to­ry would not default on its debts as it heads into its eighth year of reces­sion.

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

Investors became rat­tled when the island’s Gov­ern­ment Devel­op­ment Bank recent­ly announced it would cut bond sales to between $500 mil­lion and $1.2 bil­lion for the rest of the year, after investors pushed the yield on Puer­to Rico bonds above 10 per­cent.

The Caribbean territory’s gov­ern­ment is a major issuer of bonds in the U.S., where the bonds are pop­u­lar because they are exempt from fed­er­al and state tax­es.

Gar­cia said he would intro­duce leg­is­la­tion before year’s end to over­haul the pen­sion sys­tem for teach­ers, which is at risk of run­ning out of funds. Ear­li­er this year, he reformed a sep­a­rate and larg­er pub­lic pen­sion sys­tem that was crum­bling under a $37.3 bil­lion unfund­ed lia­bil­i­ty.

Last week, Gar­cia also increased the bor­row­ing capac­i­ty of Puer­to Rico’s main debt issuer, the Sales Tax Financ­ing Author­i­ty, in a move praised by sev­er­al munic­i­pal bond ana­lysts.

The move comes as the ter­ri­to­ry strug­gles with $70 bil­lion in pub­lic debt and a 13.9 per­cent unem­ploy­ment rate, high­er than any U.S. state.

Trea­sury Sec­re­tary Mel­ba Acos­ta said rumors about the U.S. gov­ern­ment inter­ven­ing to help alle­vi­ate Puer­to Rico’s finan­cial cri­sis are not true. But she said U.S. offi­cials are dis­cussing set­ting up a com­mit­tee that would help find ways to boost the island’s econ­o­my.

“It’s some­thing that’s under dis­cus­sion right now,” she said.

Investors, how­ev­er, kept ques­tion­ing the pos­si­bil­i­ty of the fed­er­al gov­ern­ment becom­ing involved, and whether ter­ri­to­r­i­al agen­cies could file for Chap­ter 7 or 11 bank­rupt­cy restruc­tur­ing.

One not­ed the mar­ket is spec­u­lat­ing that the island’s pow­er com­pa­ny could file for bank­rupt­cy because it oper­ates as a most­ly autonomous enti­ty.

“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.”

Acos­ta promised investors that the gov­ern­ment would cut its $820 mil­lion bud­get deficit in half by 2015. Offi­cials not­ed that the deficit has already been reduced from $2.4 bil­lion.

Offi­cials also pledged to start hold­ing reg­u­lar investor web­casts at least once a quar­ter and said agen­cies includ­ing the High­way Trans­porta­tion Author­i­ty would start post­ing their quar­ter­ly and month­ly results.

David Chafey Jr., board pres­i­dent of the Gov­ern­ment Devel­op­ment Bank, said he doesn’t expect the island’s four main pub­lic cor­po­ra­tions to need sub­si­dies or loans for the upcom­ing fis­cal year, in part because of such mea­sures as an aver­age 60 per­cent rate increase by the state water com­pa­ny.