Borinquen MadeDated notes on Puerto Rico
Puerto Rico news: economy and politics
This desk gathers dated notes on the economy and politics of Puerto Rico, taken from named outlets. It is not the magazine's historical archive. Each note cites its outlet. It is not original reporting.
A dated, sourced desk. Each note names its outlet. It is not original reporting. Figures are those the source published. If sources disagree, both layers are left in place.
Krueger report: the true deficit is much larger and debt is unsustainable without growth
Jun 29, 2015 (upd. Jul 13). OGP PDF: overall deficit ~5% GNP; gaps $3½–7½ billion/year. Report ≠ disbursement.
Comptroller: adverse opinion on CFSE internal controls (CP-15-10)
May 27, 2015. Incomplete board, no risk assessment or annual inventories. Finding ≠ conviction.
Vulture funds corner Puerto Rico
Apr 9, 2015. CPI: 40–50% of debt in hedge funds; $3.5 billion issue (Mar 2014).
Federal court strikes down the Criolla Bankruptcy Law
Besosa (Feb 7, 2015). Franklin/BlueMountain; 2014 Act vs federal Code; PREPA ~$2,000 million in the suit.
Suit targets GDB over land sale to Plaza Las Américas without auction
New Century seeks $5 million and nullity; appraisal $52M → sale $24M. Suit ≠ judgment.
CPI: public money at risk in the Aguirre Gas Port
PREPA/Excelerate >$280 million in contracts; infrastructure cap ~$295 million; financing unclosed after downgrade.
Governor defends law to restructure public-corporation debt
Defends “homegrown bankruptcy” framework; public-corp debt ~$26,000 million (PREPA ~$10B / Highways $7B / PRASA ~$4.5B).
Governor signs the Fiscal Sustainability Law (Act 66)
18 Jun 2014. Fiscal emergency; cuts ~$1,350 million FY2015; no layoffs or shorter workweek.
Suit: Medicare Advantage plans in PR allegedly overbilled >$1,000 million
Whistleblower Valdez vs MMM/PMC (Aveta); $300–350M/year 2007–10. Allegation ≠ conviction.
Comptroller: Tourism — possible Penal Code violations and ACH control failures ($804 million)
CP-14-21 (10 Jun 2014). Accounting Manager; 5,925 ACH disbursements. Finding ≠ conviction.
GAO-14-31: statehood would change 11 federal programs and the tax burden
4 Mar 2014. Medicare/Medicaid/SNAP/SSI: ranges vs actual spend. Estimate ≠ disbursement.
García Padilla defends proposed bond issuance
Legislature authorizes $3,500 million GO issuance to pay GDB debt coming due (no funds).
CPI: Stiglitz — the agencies that downgraded the bonds lack legitimacy
Nobel at CNE: rating agencies without legitimacy post-subprime; little market reaction to the downgrade. Cousin 589.
Standard & Poor’s cuts Puerto Rico’s credit to junk
S&P (4 Feb 2014): GO BBB− → BB+; GDB/Retirement to BB; CreditWatch negative. Cousin 587.
Court blocks MIDA against the National Patent, but orders regulations
Act 40; Hacienda estimates $500 million FY; mandamus 30 days. Estimate ≠ collected.
Officials react to new Moody’s downgrade warning
12 Dec 2013. GOs under review; liquidity and short-term; ~90 days to speculative.
Comptroller: adverse opinion on GDB financing controls (CP-14-03)
15 Sep 2013. Seven findings; 42 municipal disbursements $16.98 million. Finding ≠ conviction.
Bhatia summons PREPA and GDB to explain bond issuance to the Senate
PREPA issuance $600 million; long-term debt would rise to ~$9,000 million; Finance Committee hearing.
CPI: film tax-credit benefits questioned
Transferable/refundable credits; PR pays ~50% before filming; brokers 10–30%; Iowa/Michigan alerts.
García Padilla signs retirement-system reform into law (Act 3)
4 Apr 2013. Senate 14–11 / House 26–22; amendments funds ~$230 million.