García Padilla defends proposed bond issuance

On February 28, 2014, El Nuevo Día reported that Governor Alejandro García Padilla defended the bill authorizing issuance of $3,500 million in general obligation (GO) bonds approved by the Legislature.

According to the accessible lede, the issuance would be used to pay the large debt the Government Development Bank (GDB) carries on its books — debt that is coming due and for which there are no funds, according to the dek.

This desk does not invent coupons, buyers, or a use-of-proceeds breakdown: the rest of the body sits behind a paywall.

Authorizing/issuing GOs is not a disbursement to services. Replacing debt that is coming due is not “theft” or a principal forgiveness.

Source: El Nuevo Día. https://www.elnuevodia.com/noticias/politica/notas/garcia-padilla-defiende-propuesta-de-emision-de-bonos/