Monthly Archives December 2016

The Fiscal Oversight Board (FOB), is gradually entering the implementation phase of the provisions of the law that created it. Sometime in the next few weeks, the Fiscal Plan required by the PROMESA, will have to be submitted by the incoming government and the FOB will have to certify it, as established by Section 201 of Section 2 of the federal statute.   Last week, this body let it be known in a communication to the outgoing governor, Alejandro Garcia Padilla, and the governor-elect, Ricardo Rosselló, what were the parameters within which the five-years Fiscal Plan should be developed. The
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Puerto Rico’s huge debt became the center of an intense dispute since 2014, when the commonwealth credit was downgraded. There are two visions about the debt dilemma. The outgoing administration stated that the outstanding debt of $70 billion is not payable, while creditors and others analysts argued that indeed the debt is payable.   The fact is that Puerto Rico’s total public debt is divided in 15 non-related issuers with different financial and legal structures. In this article, I analyze the General Obligation Bonds (GO), that has an outstanding debt of $13,883 million.   Without any doubt, the GO is
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