Puerto Rico News Digest For March 1, 2016

ZIKA CAN INFECT 1 IN 5 PUERTO RICANS

From The Washington Post:

"There are 117 confirmed cases of the virus in Puerto Rico, four times the
number at the end of January. The island territory, which has a population
of 3.5 million people, is “by far the most affected area” in the United States,
Tom Frieden, director of the Centers for Disease Control and Prevention
(CDC), said Friday...Experts say urgent action is needed before mosquitoes
reach their peak with the start of the rainy season in April. Experts from the
CDC estimate that 700,000 people — about 20 percent of the population —
could be infected across the island by the end of the year..."

STEM CELL BILL UNDER CONSIDERATION

From The San Juan Daily Star:

"The Health Committee of the Puerto Rico House of Representatives is
investigating the viability of establishing stem cell banks through private
and public collaboration in a bill entitled “Anatomical Donation Law.” The
measure would authorize mthe extraction of blood from placentas and umbi-
lical cords of newborns, with the goal of utilizing the mother’s cells for re-
search and for the treatment of more than 70 illnesses, according to Inter
News Service..."

ROSELLO CRITICIZES PDP ON IVA TAX

From Caribbean Business:

"Gubernatorial candidate for the New Progressive Party (NPP) Dr. Ricardo
Rosselló reacted to Gov. Alejandro García Padilla’s State of the Common-
wealth address Monday by stating that “the governor has missed the oppor-
tunity to repent and admit the mistakes of his administration. He should
have taken back his failed public policy. However, he continues lying to
the people and with his stubbornness to continue raising taxes and squee-
zing the poor, hard-working and productive class of our island,” the NPP
leader said after the governor’s message..."

FORUM TO EXPLORE FISCAL LAW FOR PR

From News Is My Business:

"Chile’s former finance minister and an ex-lieutenant governor of New York
will be among five panelists appearing Wednesday in Washington, D.C., to
discuss how a Fiscal Responsibility Law (FRL) might help stabilize Puerto
Rico’s public finances and overhaul the island’s fiscal infrastructure. The fo-
rum, organized by the San Juan-based Center for a New Economy (CNE), is
to take place at the National Press Club..."

Puerto Rico News Digest For December 11, 2015

BHATIA CONDEMNS GOP FISCAL BILL

From Caribbean Business:

"If Congress does not approve Chapter 9 protections for Puerto Rico
before the end of the year, Bhatia said that the commonwealth will
have to default on Jan. 1 and deal with the legal consequences.“The
proposals set forth by Republicans are not acceptable to anyone at
the moment. I think we have to reject them or amend them,” Bhatia
said in a radio interview. “There is a lot of work to be done during
this week and the next to amend that [bill], and obtain acceptable
proposals for Puerto Rico,” he added. The Puerto Rico Assistance
Act provides short-term tax relief to workers and makes $3 billion
in funds available to the commonwealth, but stops short of granting
the commonwealth access to Chapter 9 bankruptcy protection..."

PR SHOPLIFTING LOSSES AT $490M

From News Is My Business:

"Puerto Rico retailers and the government are losing some $490 million
in annual revenue as a result of shoplifting and organized crime, mem-
bers of the Puerto Rico Marketing, Industry and Food Distribution Cham-
ber said Wednesday. The problem also affects consumers, who pay higher
prices as businesses attempt to compensate for the costs. A portion of tho-
se losses are also attributed to uncollected sales and use tax revenue that
the Puerto Rico Treasury Department is failing to receive..."

PREPA RESTRUCTURING EXTENSION EXPECTED

From San Juan Daily Star:

"As the Puerto Rico Electric Power Authority (PREPA) secured another
extension from bondholders to get insurance companies to sign onto an
agreement to restructure the agency’s $8.2 billion of debt and for comm-
onwealth lawmakers to approve the proposal, financial analyst Daniel
Hanson said Wednesday that he is not surprised by the news. The agree-
ment extends termination dates on an earlier accord between PREPA and
investors owning about 35 percent of the agency’s bonds to Dec. 17, the
utility said in a statement. The pact, which was set to expire Thursday,
was extended for a third time since being signed last month..."

FIRST SAME SEX ADOPTION APPROVED

From Latin Correspondent:

"A court in Puerto Rico has allowed adoption by same-sex couples for
the first time in the country’s history. Judge Ladi Buono De Jesús today
answered Ángeles Judith Acosta Rodríguez’s request to adopt her partner
Carmen Milagros Vélez Vega’s biological child Juliana. The minor will
remain in the national registry under both women’s surnames, according
to Vanguardia.  This was the second time that the couple attempted the
claim..."

COMERIO TWITTER TROLL ARRESTED

From Fox News Latino:

"A Puerto Rico man accused of creating 300 Twitter accounts to harass
people online has been arrested in the first case of its kind for the U.S.
territory, authorities said Tuesday. The island's Justice Department said
27-year-old Omar Falcon Torres is suspected of operating under the na-
me "MedeaBot" for two years. He faces charges that include stalking,
misappropriation of identity and intimidating witnesses in part by send-
ing people "violent sexual imagery" and using violent language, authori-
ties said..."

Working Group Proposes Establishment of Puerto Rico Fiscal Oversight and Economic Recovery Board

Press Release

Government Development Bank for Puerto Rico

Independent, Non-Political Body Will Ensure Compliance with Fiscal 

and Economic Growth Plan

San Juan, P.R. – The Working Group for the Fiscal and Economic Reco-

very of Puerto Rico (the “Working Group”) today announced that Gover-

nor Alejandro Garcia Padilla has presented to the legislature the Puerto 

Rico Fiscal Responsibility and Economic Revitalization Act (the “Act”), 

which will establish the Puerto Rico Fiscal Oversight and Economic Re-

covery Board (the “Board”). The Act and the establishment of the Board 

will support Puerto Rico’s efforts to address its immediate fiscal crisis by 

seeking to restore public confidence in the Commonwealth, while also re-

maining incompliance with the Commonwealth’s constitution. Along with 

the Working Group, the Board will facilitate a return to long-term fiscal 

sustainability and economic growth and provide Puerto Rico’s creditors 

with assurance that conditions agreed to as part of any comprehensive debt 

restructuring agreement, as well as compliance with the Working Group’s

Fiscal and Economic Growth Plan (“FEGP”), will be monitored by an inde-

pendent, non-political body.

The Board will be comprised of five members appointed by the Governor 

and approved by the Senate. The members will select a chairperson from 

amongst themselves. The Board will have fiscal oversight authority over 

“Covered Entities,” which include: the Commonwealth; each individual 

department and agency of the Commonwealth; and each public corporation

or instrumentality, other than the Puerto Rico Electric Power Authority and 

the Puerto Rico Aqueduct and Sewer Authority, unless they are designated 

as a Covered Entity by the Governor. In order to respect their constitutiona-

lly protected independence, the judicial branch, the legislative branch, and

the Office of the Comptroller are not Covered Entities under the Act. The 

Government Ethics Office and the Office of the Special Independent Prose-

cutor are also not considered Covered Entities. The Act will require the 

Working Group to submit a proposed Commonwealth-wide, consolidated 

five‐year fiscal and economic growth plan to the Board for approval at the 

later of the end of the second quarter of 2016 or after all of the members of 

the Board shall have taken office. The Board will then be required to deter-

mine whether the Working Group’s plan complies with the objectives set 

forth in the Act, including:

* Implementing structural reforms with the goal of restoring economic 

growth and competitiveness in the Commonwealth

* Eliminating, over time, of the financing gaps and reducing of the debt 

burden of the Covered Entities to sustainable levels; and

* Improving institutional credibility across all government entities through 

improved budget formulation and execution, and data transparency.

If the Board concludes that the proposed fiscal and economic growth plan 

meets the objectives of the Act, the Working Group will submit the plan

to the Governor for review and approval. If the Board withholds approval,

it may provide recommendations for revisions to the proposal in order for

the plan to meet the objectives of the Act.

Further, under the Act, each entity must submit a proposed annual budget 

to the Board by no later than March 1 or such later date determined by the 

Board, in its sole discretion. The proposal must be accompanied by a report 

from the Office of Management and Budget identifying the individual mea-

sures of revenue increase and expense reductions included in the budget 

that conform to the approved Fiscal and Economic Growth Plan for that 

fiscal year. The Board shall have 30 days after the receipt of each budget 

to determine if the proposal complies with the Fiscal and Economic Gro-

wth Plan. The Board will be provided with information gathering authority 

in order to monitor each entity’s compliance with the Fiscal and Economic 

Growth Plan, and to approve annual budgets and monitor their compliance. 

The Act also imposes certain automatic expense control mechanisms and 

other measures to address non-compliance with approved budgets and with 

the Plan generally.

Finally, the Act amends certain provisions of the Organic Act of the Office

of Management and Budget and the Government Accounting Act for the 

purpose of, among other things, (a) implementing the requirement that the 

revenue estimates used to prepare the Commonwealth’s budget must be 

certified by an independent third-party selected by the Board, (b) providing

 that the Commonwealth’s budget shall identify certain appropriations, to be 

known as "Sequestered Appropriations,” representing 2.5% of the total app-

ropriations for operating expenses and special appropriations included in the

Commonwealth’s budget, which Sequestered Appropriations shall be relea-

sed or cancelled in accordance with the Act, and (c) implementing other mea-

sures aimed at ensuring sound fiscal and accounting practices. 

Puerto Rico News Digest For October 16, 2015

GOVERNOR IN DC FOR FISCAL MEETINGS 

From The San Juan Daily Star:

"Gov. Alejandro García Padilla left for Washington, D.C. on Wednes-
day to discuss alternatives for helping Puerto Rico deal with its debt,
which as of July was $69.7 billion, including allowing the island to be
covered by the federal bankruptcy law. The Government Development
Bank (GDB) is facing a $354 million debt payment on Dec. 1 and the
commonwealth government is expected to make a huge payment on
its general obligations (GOs) in January. The White House has made
it clear it won’t bail out the  commonwealth and Congress appears not
to be willing to help either. On Oct. 22, the Senate Natural Resources
Committee is slated to evaluate the government’s fi scal state in a hea-
ring that is expected to include options for Congress moving forward..."

CARJACKING RAPIST FOUND GUILTY BY JURY

From US Attorney's Office:

"Carlos Cruz-Rivera, aka “Cano Llorens,” was found guilty on all
counts of carrying a firearm during and in relation to a crime of vio-
lence (carjacking) and possession of a firearm by a convicted felon,
announced United States Attorney Rosa Emilia Rodríguez-Vélez.
United States District Judge José A. Fusté presided over the trial.
The convict had pled guilty to three counts of carjacking  in the sa-
me accusation on October 6, 2015. On September 9, 2015, a fede-
ral grand jury returned a seven-count superseding indictment char-
ging a Cruz-Rivera with three counts of carjacking, three counts
of using and carrying a firearm during and in relation to a crime
of violence, and one count possession of a firearm by a convicted
felon. During the three day trial, the government presented pictu-
res and witness’ testimonies that narrated the criminal incidents
of rape, kidnapping, carjacking, and robbery that that the defen-
dant perpetrated against the innocent victims..."

SENATE PASSES EDUCATION REFORM

From Caribbean Business:

"The Puerto Rico Senate approved Bill 1456, authored by the body's
president, Eduardo A. Bhatia, which intends to bring about educa-
tional partnerships to operate public Lider (Spanish acronym for
charter) schools, grant schools greater autonomy and to have more
of the budget’s allocation for education reach the classroom..."

GOVERNOR SUBMITS FISCAL BOARD BILL

From News Is My Business:

"Gov. Alejandro García-Padilla submitted late Thursday to the legis-
lature the bill that will give way to the creation of a five-member fis-
cal oversight board that among other things, will be responsible for
enforcing compliance with approved budgets. The proposed “Fiscal
Responsibility and Economic Revitalization of Puerto Rico Law” es-
tablishes the independent, non-partisan entity will also be responsible
for approving the proposed Economic and Fiscal Growth plan and en-
sure that future Commonwealth and agency budgets comply with the
provisions of that plan..."

Puerto Rico News Digest For September 18, 2015

CARRAIZO RESERVOIR KEEPS RISING

The Carraízo water reservoir, which serves a large part of the  San Juan
metropolitan area, registered a level this morning of  38.52 meters, only
48 centimeters away from reaching "Observation Level". That level is
the goal that Puerto Rico's water utility, AAA, had set for ending  the
water rationing plan that thousands of users in the metro area have been
enduring for several months. Water rationing is currently on a 24 hour
alternating schedule. The other major reservoir in the  area, La Plata,
saw gains of 2 inches overnight, but it's levels are considerably lower
than Carraízo's and rationing for La Plata users is not expected to end
any time soon.

GOVERNMENT MAY HAVE TO SHUT DOWN

From The San Juan Daily Star:

The Puerto Rico government will have to decide in favor of a partial
government shutdown or go into default on its general obligations due
in January if the projections of a report by financial advisers materiali-
ze. “If Conway MacKenzie’s forecast materializes, then there is a sig-
nificant risk of at least a partial government shutdown before the end
of 2015,” Center for the New Economy (CNE) Public Policy Director
Sergio Marxuach said. The report of the advisory firm Conway Mac
Kenzie states that the government may have a bank cash deficit of
$29.8 million in November and a peak cash defi cit of $511.6 million
in June. However, it states the commonwealth Treasury single account
will have a deficit of $612 million or $1.788 billion, the last number in
the event of all risks occurring.

GOVERNOR MEETS WITH US TREASURY SECRETARY

From Caribbean Business:

Gov. Alejandro García Padilla held several meetings this week in Wa-
shington, D.C., with Obama administration officials and members of
Congress, with the discussions focusing on fiscal and economic deve-
lopment issues, including access to Chapter 9 bankruptcy protection,
Medicare funding, infrastructure projects and corporate tax treatment.
García Padilla met with Treasury Secretary Jacob J. Lew and National
Economic Council Director Jeffrey Zients Thursday. The group discu-
ssed the recently released Fiscal & Economic Growth Plan. According
to a statement released by Treasury, Lew and Zients "commended the
governor for producing a serious and comprehensive accounting of the
Commonwealth’s overall fiscal position and proposal for how the Co-
mmonwealth can achieve financial sustainability over the next five
years.”

MALL OF SAN JUAN OPENS 18 NEW STORES

From News Is My Business:

The Mall of San Juan announced Thursday that 18 new stores, including
Puerto Rico’s only Williams-Sonoma and Pottery Barn, along with luxury
brands Bulgari and Gustavo Arango and the 100th Oil & Vinegar store
will join its shopping and dining lineup this month — the majority of
which are exclusive to the market. “Our lineup of premium retailers and
restaurants will become even more distinctive this month,” said Marnie
Marquina, marketing and sponsorship director, The Mall of San Juan.
“From talented Puerto Rican designers to stores exclusive to the island,
we’re excited to offer our customers a truly unique shopping and dining
experience.”

64,000 PEOPLE LEFT PR LAST YEAR

From ABC News:

A record 64,000 Puerto Ricans left the island last year for the U.S. main-
land, the highest number in the past decade, officials said Thursday. The
exodus represents a 31 percent increase from 2013, when some 49,000
people left, according to the island's Institute of Statistics. The surge in
departures comes as the U.S. territory of 3.5 million people struggles with
a nearly decade-long economic slump. The island has a 12 percent unem-
ployment rate, higher than any U.S. state, and has a labor participation ra-
te of less than 40 percent, compared to 62 percent on the U.S. mainland.

Sharks Are Circling For Their Share Of Puerto Rico's Assets

Orlando Sentinel

Nelson A. Denis 

On Sept. 8, the governor of Puerto Rico unveiled a new economic plan
and demanded that creditors "share the burdens of the sacrifices." Un-
fortunately, the actual document — the Fiscal and Economic Growth
Plan — is low on shared sacrifice and high on creditor profit, and it is
geared toward a sell-off of the island's entire infrastructure.

In addition to a slew of austerity measures, the FEGP will establish a
five-person Financial Control Board whose members are nominated by
"interested parties," including Puerto Rico's hedge-fund creditors and
the U.S. federal government. This board will have "extensive subpoena
powers" and oversight authority over the entire government of Puerto
Rico.

The core FEGP proposal is the sale of Commonwealth real-estate assets,
and the establishment of "P3s" throughout the island: public-private part-
nerships that turn public infrastructure into private, revenue-generating
concessions...[CONTINUE READING]

Puerto Rico News Digest For September 16, 2015

GDB, TREASURY OUT OF MONEY BY YEAR END

From The San Juan Daily Star:

The Puerto Rico Treasury Department’s single cash account and the Go-
vernment Development Bank (GDB) are each expected to exhaust their
liquidity before the end of calendar year 2015. The information was con-
tained in a liquidity update report by Conway-MacKenzie (CM) and in
the island government’s fiscal adjustment plan. Both documents were
made public last week. The Treasury has a treasury single account (TSA)
in which it deposits and disburses amounts related to the General Fund,
certain federal funds, government agencies, general obligation debt issu-
ances (GOs) and payments, net pension benefits, and other items.

PRASA REACHES DEAL WITH US GOVERNMENT

From Caribbean Business:

Under a settlement with the U.S. Department of Justice and the Environ-
mental Protection Agency (EPA), the Puerto Rico Aqueduct and Sewer
Authority (Prasa) has agreed to make major upgrades, improve inspecti-
ons and cleaning of existing facilities within the Puerto Nuevo system and
continue improvements to its systems island-wide, according to the Justice
Department. The Puerto Nuevo sewer system serves the municipalities of
San Juan, Trujillo Alto, and portions of Bayamón, Guaynabo and Carolina.
The settlement updates and expands upon legal settlement agreements rea-
ched with Prasa in 2004, 2006 and 2010.

COCAINE FOUND ON EAST PR COAST

From Caribbean News Now:

US Customs and Border Protection (CBP) Office of Air and Marine Agents
on Friday night recovered 114 pounds (51.7 kilos) of cocaine inside four back-
packs that were ditched by smugglers on the east coast of the island. The esti-
mated value of the seized contraband is $1.4 million.  CBP units near Ceiba,
Puerto Rico found 30 individually wrapped bricks of cocaine inside two pie-
ces of luggage. “Our marine units patrol work with law enforcement partners
to detect and intercept criminal organizations that seek to introduce illegal nar-
cotics,” stated Johnny Morales, director of air operations for CBP’s Caribbean
Air and Marine Branch (CAMB). “This seizure is evidence that our persistence
 is fruitful.”

SALES TAX REVENUE OVER ESTIMATES

From News Is My Business:

Puerto Rico sales and use tax (SUT) revenues collections totaled $190.7 mi-
llion in August, the first month the new 10.5 percent rate was in effect, ex-
ceeding projections by $22.2 million, or 13.2 percent, Treasury Secretary
Juan Zaragoza said Monday. August 2015 estimates took into account the
possible effect of purchases made in advance of the rate increase. Neverthe-
less, the monetary values of the tax base subject to the SUT were very simi-
lar for August 2015 and August 2014, Zaragoza said.

Puerto Rico News Digest For September 14, 2015

CARRAIZO RATIONING CUT TO ONE DAY

Alberto Lázaro, President of AAA, Puerto Rico's water utility , announced
that users served by the Carraízo water reservoir in Trujillo Alto will go back
to Phase I water rationing starting tomorrow. This means that water service
will only be interrupted for 24hours at a time, rather than the current 48 hours.
Carraízo serves Trujillo Alto, Carolina and parts of San Juan, Gurabo and Ca-
nóvanas. Lázaro stated that rains produced by the remnants of Tropical Storm
Grace raised the reservoir's level by half a meter.

PROPERTY TAXES COULD GO UP

From The San Juan Daily Star:

Mayors Association President Rolando Ortiz Velázquez said Thursday that if
funds are taken away from municipalities as part of the fiscal adjustment plan,
residents will pay for it through increases in property taxes. The five-year fis-
cal adjustment plan proposes the repeal of subsidies to the University of Puer-
to Rico, to municipalities and to non-profit groups. Ortiz, who is the mayor of
Cayey, said they are waiting for legislation that implements the fiscal adjust-
ment plan but anticipated a fight against the measures that could trigger the
dismissal of municipal employees and curtail direct services to citizens.

POLL: PUERTO RICANS FEELING PESSIMISTIC

From Caribbean Business:

According to a poll conducted by consulting company Gallup, 6% of Puerto
Rico residents believe economic conditions on the island are getting better.
This figure ranks the island far below “the least optimistic state,” West Vir-
ginia, where 24% say economic conditions are getting better. Puerto Rico
also fares poorly compared with countries in Latin America and the Caribbe-
an, where it ranks last in economic optimism, along with Venezuela, Gallup
found. Poll results reveal Gov. Alejandro García Padilla’s approval on the is-
land to be low as well. “Fewer than one in five Puerto Ricans (19%) say they
approve of the way García Padilla is handling his job,” Gallup said in a relea-
se on its findings.

PIRATES, MARLINS MAY PLAY IN PR IN 2016

From Sporting News:

Major League Baseball is headed back to Puerto Rico next season. The Pira-
tes and Marlins will play "all or part" of a scheduled four-game series on the
island in 2016, the Los Angeles Times reports. The teams are scheduled to
play in Miami from May 30-June 2, according to schedules released last week.
The games would be moved to San Juan to celebrate Pirates legend Roberto
Clemente, the island's favorite son.

CRUISE SHIP WORKER ARRESTED FOR RAPE

From Yahoo! News:

A Carnival cruise ship worker was detained Saturday in Puerto Rico on accu-
sations he raped a woman onboard, according to authorities. Police said the
alleged rape occurred in one of the cabins of the Carnival Liberty ship that is
docked in San Juan. The unidentified man has not been charged.

Puerto Rico News Digest For September 10, 2015

PUERTO RICO BRACES FOR BUDGET CUTS

From AP / WINK News:

Puerto Rico is bracing for widespread spending cuts after the government
released a long-awaited fiscal reform plan on Wednesday that would redu-
ce much of the island’s $72 billion public debt and calls for restructuring
the remainder at the expense of bondholders. The five-year plan proposes
that the government cut subsidies to municipalities and the University of
Puerto Rico, offer early retirement and reorganize or merge state agencies.
It also calls on the government to extend until 2021 legislation that would
freeze new hires, salary increases and collective bargaining agreements.
Gov. Alejandro Garcia Padilla acknowledged in a televised address that
Puerto Ricans already have had to endure new taxes, an increase in utility
bills and layoffs during a nearly decade-long economic stagnation.

FINANCIAL CONTROL BOARD TO BE ESTABLISHED

From Caribbean Business:

A five-member, independent financial control board will be tasked with
ensuring that the recently released Fiscal & Economic Growth Plan (FE
GP), once approved, is followed, and would have the necessary powers
to ensure compliance, particularly if subsequent administrations decide
to do away with the final plan. It would be in place for the five-year pe-
riod of the plan, after which further extending its term would be conside-
red. Moreover, the board would have the authority to approve the plan,
as well as the power to force budgetary cuts, among other corrective ac-
tions, which will be part of draft legislation to be submitted to the Legis-
lature for its establishment. It has yet to be revealed when the Economic
Recovery Working Group will deliver its proposed legislation to Puerto
Rico lawmakers for their necessary approval.

WATER RESERVOIR LEVELS FOR TODAY

Carraizo is on the far left, while La Plata is immediately to its right.
Users served by both reservoirs are currently subject to water ratio-
ning. Some rain has fallen over the area this morning, with more ex-
pected over the next two days, as two low pressure systems pass over
the area.

SCHOOLS MAY RETURN TO NORMAL SCHEDULE

From The San Juan Daily Star:

If the water levels at the Carraízo and La Plata reservoirs continue in-
creasing, the Education Department may change the policy implemen-
ted at the beginning of the school year and return to normal school days
and hours -- offering classes Monday to Friday or extending school hours
 at those public schools where class periods have been reduced due to wa-
ter rationing. In a radio interview Tuesday, Education Secretary Rafael
Román said the rationing plan has cost the agency close to $1 million in
the purchase of water cisterns and water storage containers for the sch-
ool’s cafeterias, among other facilities, in order to supply water at the
affected schools. Román said that toward the end of the week he will be
discussing the state of the reservoirs and the changes made in the ratio-
ning plans.

CRUISE SHIP PASSENGES FLOWN TO PR

From Yahoo! News:

Officials say Carnival Cruise Lines is flying 770 passengers to Puerto
Rico after their ship caught in fire in the U.S. Virgin Islands. The
president of the company that manages the dock where the ship is ber-
thed says six chartered flights were headed Wednesday to Puerto Rico.

PR Government Releases Fiscal Plan

Caribbean Business

LUIS J. VALENTÍN

Delivered just over two months after Gov. Alejandro García Padilla tasked
the Economic Recovery Working Group with it, the Puerto Rico government
publicly released Wednesday the Fiscal & Economic Growth Plan (FEGP) —
an encompassing blueprint for the government to follow during the next five
years in a bid to bridge a $28 billion cumulative financing gap.

Besides a long and diverse list of measures aimed at jumpstarting the econo-
my, increasing revenue and further cutting government spending, the plan al-
so calls for the reprofiling, or restructuring, of about $47 billion of the island’s
$73 billion debt load, as the island will not be able to meet debt-service requi-
rements as scheduled, even after full implementation of the plan.

Debt-restructuring efforts would follow the Puerto Rico Electric Power Au-
thority (Prepa) example, and affect various issuers, including the common-
wealth’s general-obligation (GO) and Sales Tax Financing Corp. (Cofina by
its Spanish acronym) bonds...[CONTINUE READING]

Puerto Rico News Digest For September 8, 2015

COP MURDERED IN COLD BLOOD

Police officer Miguel Pérez Ríos, age 32, was gunned down in cold blood
by four individuals early on Sunday morning near a Shell gas station on PR-
838 in Caimito. After repeatedly shooting him, the killers left the officer's
body sprawled on the pavement before fleeing the scene. The deceased lea-
ves  behind three children, plus another one that is expected to be born this
coming November. Pérez Ríos had reportedly received threats recently, li-
kely resulting from his activities as a police officer. An uncle told El Nuevo
Dia, "Because he threw so many people in jail, for drugs and things, people
had threatened to kill him". Pérez Ríos had been honored as "Officer of The
Year" on three separate occasions. Police are reportedly holding an individu-
al for questioning in relation to the murder.

UNIONS TO PROTEST IN FRONT OF CAPITOL

From Caribbean Business:

Multiple unions announced Monday they will march to the Puerto Ri-
co Capitol on Friday, at 3 p.m., against the government's fiscal adjust-
ment plan. Puerto Rican Workers Union (SPT by its Spanish initials)
President Roberto Pagán said a document leaked weeks ago belonging
to V2 Action, which provides consulting to the government's fiscal ad-
justment committee, proposes measures that affect workers, public ser-
vices and the University of Puerto Rico. The union president said "the
implementation of these measures will aggravate the economy, worsen
the quality of jobs, increase social inequality, degrade the environment
further and push more Puerto Ricans into exile."

LA FORTALEZA MUM ON RATE HIKE

From The San Juan Daily Star:

Public Aff airs Secretary Jesús Manuel Ortiz said the governor will
continue to give the Puerto Rico Electric Power Authority (PREPA)
free rein in its restructuring talks but did not say if it will support a
hike in power rates needed to bring the public corporation to sustai-
nability. “We have given them all the space they need without inter-
vening,” Ortiz said. “All we want is for them to negotiate a deal that
is good for the public corporation and the infrastructure.” Ortiz said
a proposed rate hike was not part of the negotiations. However, it is
part of PREPA’s recovery plan to put the utility on a sustainable path.

475,000 PR MINORS LIVE IN POVERTY

From Fox News Latino:

About 475,000 minors live in poverty in Puerto Rico, according to fi-
gures from the 2015 Kids Count Data Book and the Puerto Rico Youth
Development Institute, or IDJ. Seven of the 16 indicators measured by
the Kids Count Data Book worsened for Puerto Rico in comparison with
five years ago, IDJ executive director Xiomara Caro said. "In many of
these indicators, especially in those in the economic well-being category,
we're worse than Mississippi, which is the poorest state in the United Sta-
tes," said Caro regarding the study, which revealed that 83 percent of the
children in Puerto Rico live in zones of high poverty.

Puerto Rico News Digest For August 31, 2015

RESERVOIR LEVELS GO UP AGAIN

Rains produced by Tropical Storm Erika and a low pressure  system that
passed over the island yesterday have helped  boost water levels at the
Carraízo and La Plata reservoirs. La Plata, the reservoir most affected by
the drought, was  up seven centimeters this morning. Carraízo increased
by 4 centimeters, with a total gain over the last several days of 2.67 me-
ters. Due to the increase, the water rationing plan for users served by Ca-
rraízo has been changed to two days without service and one day with wa-
ter from the recent three-days-off/one-day-on plan. The rationing plan for
users served by La Plata remains unchanged.

ERIKA LEAVES $20M IN AGRICULTURE LOSSES

From Caribbean Business:

After estimating preliminary losses at about $6 million in damaged agricul-
tural crops after Tropical Storm Erika’s passage through the island, these
estimates have soared to as much as $20 million, according to Puerto Rico
Agriculture Secretary Myrna Comas. Among the most damaged crops, par-
ticularly due to Erika’s winds, are plantains and bananas, while losses have
also been reported in coffee and orange plantations. Affected municipalities
include Yabucoa, Maunabo, Salinas, Adjuntas, Lares, Maricao and other
towns in the island’s mountainous region. Erika also ruined hydroponic
greenhouses and other shade-house projects.

CUOMO TO LEAD PR ECONOMIC DELEGATION

From NY Daily News:

In the midst of the economic crisis in Puerto Rico, Gov. Cuomo is set to ann-
ounce he’ll soon be leading a delegation to the troubled island,  sources tell the
Daily News. The “solidarity” trip is expected to take place in early September
and involve a group of “financial experts” and elected leaders, including City
Council Speaker and Puerto Rico native Melissa Mark-Viverito, said one sour-
ce familiar with the developing plans. “New York is home to more Puerto Ri-
cans than any other state in the country, and the governor believes we have a
responsibility to support our  friends in times of need,” the source said.

PUERTO RICO DELAYS FISCAL PLAN

From Reuters: