Cate Long & Gil Hall Discuss News Events in Puerto Rico

by Gil Hall

In this week’s round-up show, Cate Long and Gil Hall discuss and analyze events from Puerto Rico. Topics include:

  • Walmart has sued Puerto Rico regarding transfer tax legislation passed in spring 2015. The case will be heard in federal court beginning February 2nd. As part of the discovery process, Walmart requested that ELA produce draft financial documents. The ELA objected. But Federal Judge Fusté ultimately overruled their objections, and demanded that the documents be released to the court.
  • Tax revenues. December 2015 tax revenues came in $2.6 million above estimates. Year-to-date the figure is approximately $20 million less than the fiscal year.
  •  Puerto Rico House Minority Leader Jenniffer González proposed a bill to delay the implementation of the VAT scheduled for April 1st.
  • Puerto Rico’s Governor’s Working Group released an update of their report that pushed out their timeline for growth and reduced projected revenue numbers.
  • Representatives of the Puerto Rican government met with bondholders on Friday, January 29th, in New York to discuss its proposal for a “super bond”. Draft terms released February 1st by GDB shown in image below.

Draft Puerto Rico Terms

  • PREPA’s Forbearance Agreement with bondholders expired when the Ad Hoc coalition withdrew its support, but the restructuring agreement draft was ultimately renewed by mid-week as negotiations continue. Bondholders continue to demand a rate review from Puerto Rico’s energy board.
  • United States Congress update: 46 members of the Democratic caucus asked that chapter 9 bankruptcy be made available to PR. And House continues discussions on the issue of Puerto Rico.
  • Puerto Rico pension funding update. contacts:

Cate Long: @cate_long
Gil Hall: @gillamhall

About Gil Hall

Currently writing book on PR crises. Working title: "Los Pertrechos: the Story of an Economy". Polyglot prone to prolixity in English, German &, Spanish. Based between San Juan and North Carolina. MBA/MHA.