The U.S. territory of Puerto Rico's financial state has recently been under scrutiny, with rumors of bankruptcy swirling about, but leaders insist that the island will be just fine without a U.S. federal intervention and that it won't default on its debts.

Over a conference call on Tuesday, the government denied the bankruptcy claims and the need for U.S. assistance, and reassured investors "aimed at alleviating concerns about a recent cut in planned bond sales and the island's continuing financial crisis."

Gov. Alejandro Garcia Padilla reiterated the message, saying 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."

The faith in Puerto Rico's financial stability was shaken when investors became anxious over the island's Government Development Bank recent announcement -- that 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, The Associated Press points out.

Teachers' pensions have been at risk of running out of funds; therefore, Garcia said he would introduce legislation before year's end to overhaul the pension system specifically for teachers. Earlier this year, he reformed a separate and larger public pension system that was crumbling under a $37.3 billion unfunded liability.

In another attempt to rectify the situation, 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.

This tactic comes at a time when the U.S. territory is struggling with $70 billion in public debt and a 13.9 percent unemployment rate, higher than any U.S. state.

According to the AP, 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.

Is there still a possibility that the federal government will intervene after all?

Investors are pondering the same question as well as the possibility of territorial agencies filing for Chapter 7 or 11 bankruptcy restructuring.

There is market speculation that the island's power company could file for bankruptcy because it operates as a mostly autonomous entity, one investor noted.

"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."

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

Officials hope to start a new financial chapter moving forward. They 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.

AP adds that 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.