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 September 23, 2015

LA PLATA LEVELS LOOKING BETTER

Water levels at the La Plata reservoir, which serves several towns including
parts of the San Juan metro area, increased by 74 centimeters overnight due
to yesterday's rains. Puerto Rico's water utility, AAA, expects that once the
reservoir rises another 1.28 meters, the water rationing plan that La Plata
users are currently subject to will go from two days without water to only
twenty four hours of interruption at a time. More rains are expected for the
area this afternoon. According to AAA's President, Alberto Lázaro, ration-
ing for the La Plata zones can come to an end entirely once the reservoir rea-
ches 40 meters. La Plata serves Bayamón, Guaynabo, Toa Baja, Toa Alta
and Cataño, as well as parts of San Juan, Corozal, Naranjito and Dorado.

NPP CANDIDATES VOW TO PUSH STATEHOOD

From The San Juan Daily Star:

A group of New Progressive Party (NPP) aspirants to legislative seats made a
commitment Monday to file legislation in the upper or lower chamber to enable
an admission process for Puerto Rico as the 51st state, as proposed by NPP Pre-
sident Pedro Pierluisi. The aspirants also closed ranks in support of Pierluisi’s
run for the NPP’s gubernatorial candidacy. Among the candidates for seats in
the House of Representatives who support Pierluisi’s aspirations and legislative
agenda are Jackeline Rodríguez (District 25), Carlos Flores (District 20), Hiram
Torres (District 4), Roberto Soto (District 17), Mari Carmen Mas (District 19),
Samuel Pagán (District 35), and Ramón Ramos (District 21).

US SENATE TO HOLD HEARINGS ON PR

From Caribbean Business:

The U.S. Senate Finance Committee is reportedly expected to hold a hearing on
Puerto Rico’s fiscal crisis. According to Bond Buyer, committee Chairman Orrin
Hatch (R.-Utah) said Tuesday a public hearing will take place Sept. 29 to discuss
the “dire financial situation” in Puerto Rico. On July 17, Hatch asked U.S. Trea-
sury Secretary Jacob Lew for the Obama administration’s take on various Puerto
Rico-related issues, such as the island’s fiscal and economic woes.

PREPA RESTRUCTURES $700M IN DEBT

From News Is My Business:

The Puerto Rico Electric Power Authority announced Tuesday it has reached
an agreement in principle regarding the economic terms of a restructuring of
approximately $700 million in matured debt with all of its fuel line lenders.
Under the deal, the fuel line lenders will have the following two options: Con-
vert existing credit agreements into term loans, with a fixed interest rate of 5.
75 percent per annum, to be repaid over six years in accordance with an agr-
eed upon schedule; or Exchange all or part of principal due under existing cre-
dit agreements for new securitization bonds to be issued on the same terms as
PREPA’s agreement with the Ad Hoc Bondholder Group announced on Sept.
1, 2015 (including a 15 percent principal reduction and five-year principal ho-
liday.)

GROUPON SHUTS DOWN IN PUERTO RICO

From Int'l Business Times:

Groupon, the daily deals and e-commerce site, is all set to shut down its
operations in six countries as well as Puerto Rico. Headquartered in Chica-
go, Illinois, and co-founded by Chief Executive Officer (CEO) Eric Lefko-
fsky, Groupon will reportedly lay off 1,100 jobs mainly from the sales and
customer service operations of the company. Groupon Chief Operating Offi-
cer (COO) Rich Williams revealed this restructuring in a blog post stating,
“We believe that in order for our geographic footprint to be an even bigger
advantage, we need to focus our energy and dollars on fewer countries. So,
we decided to exit a number of countries where the required investment and
market potential don’t align.”

Puerto Rico News Digest For July 27, 2015

DIVIDED NPP OUT OF ELECTION FUNDS

From The San Juan Daily Star:

The New Progressive Party (NPP) has barely enough money to operate. But for
NPP gubernatorial hopeful Ricardo Rosselló, fundraising activities have not been
affected by the fiscal crisis at all. The NPP’s finances, however, have been hit hard,
mainly because of the dispute over who will be the party’s candidate for governor.
A document from the State Elections Commission (SEC) Comptroller’s Office sho-
ws that as of June 30, the NPP had only $175 left in its electoral fund out of the $
400,000 the party receives each year for administra-tive costs. Meanwhile, the Po-
pular Democratic Party (PDP), as of June 30, had left some $171,000 left in its fu-
nd, and the Puerto Rican Independence Party (PIP) had some $260,000. Accordi-
ng to the Electoral Law, it won’t be until January 2016 that the political parties
will have access to another $600,000 for election year expenses.

AGP CALLS FOR UNITY DURING CONSTITUTION DAY

From Caribbean Business:

The unity of the Puerto Rican people was the central idea put forward by Gov.
Alejandro García Padilla in his message commemorating the 63rd year of the Co-
mmonwealth of Puerto Rico's Constitution, while people in the vicinity of the
Sabana Grande public square shouted, "Four more years!" The governor addressed
the crowd, saying Puerto Ricans should "celebrate that unity of purpose to cre-
ate an autonomous constitutional government signed in 1952." In his speech Sa-
turday, the governor spoke of former Gov. Luis A. Ferré, who ran under the Repu-
blican Statehood Party, and don Lino Padrón Rivera, of the Puerto Rican Socia-
list Party. "Without renouncing their ideals, they were able able to affix their
signatures on a document that, without a doubt, they certainly believed imperfect.
They must have known the consequences; the political and electoral risk they fa-
ced in supporting the agenda of their opponent," Luis Muñoz Marín.

CANADA BEATS PR IN PANAM VOLLEYBALL

From National Post:

Canada won its first medal ever in men’s indoor volleyball at the Pan American
Games on the final day of competition Sunday. Canada beat Puerto Rico 3-1 (25-11,
25-12, 23-25, 25-18), in front of a sea of red and white at the Exhibition Centre
to snatch the bronze medal, the 70th such medal for Canada in these Games. The
bronze also happens to be Canada’s only medal at any of the indoor or beach volley-
ball competitions. The program’s previous-best finish in men’s volleyball came in
1979 and 1999, where Canada ended up in fourth place.

TODAY'S WATER RESERVOIR LEVELS

From AAA:

Carraízo stands at 35.13 centimeteres, while La Plata is registering a 37.06 cm
level this morning. NO significant rain is expected for the next several days.

PR Resident Commissioner Announces Status Hearings

Res. Comm. Pedro Pierluisi

Press Release

June 17, 2015


Resident Commissioner Pedro Pierluisi announced today that the Subcommittee
on Indian, Insular and Alaska Native Affairs within the House Natural Resources
Committee will hold a hearing on Puerto Rico’s political status on Wednesday,
June 24th.  The Chairman of the Subcommittee is Congressman Don Young of
Alaska and the Ranking Democratic Member is Congressman Raul Ruiz of Ca-
lifornia.  The Resident Commissioner is a member of the Subcommittee.

On April 23rd, Pierluisi sent a letter to the leadership of the House Natural Re-
sources Committee, requesting that a hearing be scheduled.  Specifically, the
Resident Commissioner urged the Committee or Subcommittee to invite witne-
sses to testify about H.R. 727, the Puerto Rico Statehood Admission Process
Act, and about the Consolidated Appropriations Act of 2014, which became Pu-
blic Law 113-76 and which includes important language on the status issue.

Pierluisi introduced H.R. 727 on February 4, 2015.  The bill authorizes a federa-
lly-sponsored vote to be held in Puerto Rico within one year of the bill’s enact-
ment.  The ballot would contain a single question:  “Shall Puerto Rico be admi-
tted as a State of the United States?”  If a majority of voters affirm their desire
for admission, the bill provides for an automatic series of steps to occur that
would culminate in Puerto Rico being admitted as a state in January 2021.

“H.R. 727 already has 108 cosponsors.  There have been approximately 2,800
bills introduced in the House of Representatives so far this Congress, and H.R.
727 has more bipartisan support than 99 percent of those bills.  Given this level
of support, it is appropriate for the Subcommittee to hold a hearing to discuss
the legislation,” said Pierluisi.

The Resident Commissioner also led the fight for passage of P.L. 113-76, which
responds to the historic 2012 status referendum in Puerto Rico in which voters re-
jected the current territory status and expressed a preference for statehood.  The
law provides an appropriation of $2.5 million to fund the first federally-sponsored
status vote in Puerto Rico’s history.  This funding will remain available until it is
expended by the Puerto Rico government.  While P.L. 113-76 does not prescribe
the exact format of the ballot, leaving those details to the Puerto Rico government,
it does require the U.S. Department of Justice to certify that the ballot and voter
education materials are consistent with U.S. law and policy.  The Resident Commi-
ssioner has called for this funding to be used to conduct a straightforward, up-or-
down vote on whether Puerto Rico should be admitted as a state.

“Unfortunately, although more than 16 months have elapsed since P.L. 113-76 be-
came law, the Puerto Rico government has not submitted a proposed ballot to the
U.S. Department of Justice or taken any meaningful action to schedule this federally
-sponsored vote.  It is my hope that the Subcommittee will explore this matter in
detail at the hearing,” said Pierluisi.

Puerto Rico is currently experiencing the most severe economic and fiscal crisis in
its history.  The root cause of this crisis is Puerto Rico’s undemocratic and unequal
political status.


“As I have repeatedly stated, no people in history have prospered while being de-
prived of basic political and civil rights, and it is not reasonable to expect Puerto
Rico to be an exception to this rule.  This hearing is timely because it will provide
a forum to discuss the inextricable connection between Puerto Rico’s territory sta-
tus and its economic challenges,” said Pierluisi.

New VAT System Too Complex

Editorial

Caribbean Business

Puerto Rico Treasury Secretary Juan Zaragoza has his hands full these days
as he is trying mightily to explain the reasoning behind Gov. Alejandro
García Padilla's new tax reform, which calls for a transformation to a value-
added tax (VAT, or IVA by its Spanish acronym) system. Zaragoza's job
couldn't be more difficult as the measure is drawing the broadest opposition
that this newspaper has witnessed in a long time.

Important mayors belonging to the incumbent governor's Popular Democra-
tic Party (PDP), such as those of San Juan, Caguas and Mayagüez, as well as
former PDP Govs. Rafael Hernández Colón and Aníbal Acevedo Vilá have
come out against the VAT proposal; their voices of dissent are joined by
leaders from the opposition...[CONTINUE READING]

Puerto Rico News Digest for December 15, 2014

GUAYNABO KILLER FIT FOR TRIAL

José Luis Bosch Mulero (right) and Christopher Sánchez Asencio (left)

El Nuevo Dia has reported today that José Luis Bosch
Mulero, one of the two men charged in the grisly Guaynabo
family massacre, has been declared competent to stand
trial by state psychiatrist Yamilka Rolón García. Mulero
has been diagnosed in the past with attention hyperactivity
disorder, mild retardation and borderline intelligence.
However, the government has found him to be coherent and
logical. Both Mulero and Christopher Sánchez Asencio face
counts of murder, weapons violations, attempted murder,
kidnapping, aggravated assault, destruction of evidence,
theft and conspiracy, all related to the November 18
multiple murder.

PR 13% MORE EXPENSIVE THAN MOST OF US

From News Is My Business:

The cost of living in Puerto Rico for a professional family
is about 13 percent more expensive than it is in more than
300 urban and rural areas in the U.S. mainland, according to
the findings of the Cost of Living Index.

Puerto Rico recently began participating in the methodology
introduced in 1968 by Virginia-based Council for Community
and Economic Research, known as the C2ER, and adopted by
the Puerto Rico Statistics Institute as a way to provide data
about the island’s economy and society for the first time.

In terms of living expenses, Puerto Rico’s statistical area
placed 41 out of 325 urban and rural areas with the highest
cost standards, behind large cities such as New York, San
Francisco, Washington, D.C., Boston, San Diego, Los
Angeles, Seattle, Hartford,  Portland, Philadelphia, and
Chicago.

NPP REP OUSTED FOR VOTING FOR OIL TAX

From The San Juan Daily Star:

Arguing that he betrayed party trust and policy, the New
Progressive Party (NPP) House delegation ousted Rep. Pedro
Julio “Pellé” Santiago permanently from the caucus and asked
House Speaker Jaime Perelló to remove his fl oor bench, for
voting in favor of the crude oil tax hike.After repeatedly
telling the minority party he was going to vote according
to the caucus decision, Santiago at the last minute Monday
voted in favor of the crude oil tax, which did not at that
time have the needed votes for passage.

“Our colleague ‘Pellé’ Santiago is not part of the NPP
delegation in the House of Representatives,” House Minority
Leader Jenniffer González said at a news conference. The NPP
met for two hours Thursday to determine what disciplinary
actions to take against Santiago.

BUSINESS PLAN FOR PREPA TO BE PRESENTED

From Reuters:

A business plan for PREPA, the troubled Puerto Rican electric
authority, is to be presented to creditors on Monday, board
president Harry Rodriguez said in a statement.

The business plan of Chief Restructuring Officer Lisa Donahue
is a working document that will present different scenarios for
PREPA, but does not propose firing employees, the statement said.

Puerto Rico News Digest For November 4, 2014

.

NPP CANDIDATE WOULD BEAT PADILLA

According to a new poll from El Nuevo Dia, either of the top two 

likely gubernatorial nominees from the pro-statehood New Progre-

ssive Party would defeat sitting PDP Governor Alejandro Garcia

Padilla, if the election were held today. In a hypothetical match-

up against Ricky Roselló, AGP would get 24% of the vote, with 

Roselló getting 43%, while current Resident  Commissioner Pedro

Pierluisi would garner 37% of the vote versus the Governor's 23%. 

In either scenario, PIP candidate Juan Dalmau would receive

about 6% of the vote.

PR JOINS GLOBAL TREND WITH IVA TAX

From The San Juan Daily Star:

"The value-added tax (IVA by its Spanish acronym) that 

the Puerto Rico government is slated to implement

hovers at around 14 percent, but with the repeal of 

income taxes for many taxpayers and exemptions that

will be part of the proposed tax reform, officials do 

not expect it to have a negative impact..."

VIOLENT WEEKEND LEFT 14 DEAD

From Fox News:

"Fourteen people were killed over the weekend in Puerto 

Rico, to make it the second most violent so far this year, the 

Caribbean island's police told Efe on Monday..."

PR MANUFACTURING INDEX SLIDES

From Caribbean Business:

"A gauge of Puerto Rico’s manufacturing industry backed 

off in September, posting a fifth drop in six months 

below the growth threshold. The Purchasing Managers Index 

(PMI) for Puerto Rico’s manufacturing sector slid to 48.4 

in September..."

PR TO HOST 96 CONVENTIONS THROUGH JAN.

From News Is My Business:

'Puerto Rico has been selected to host 96 events including, 

conferences, annual meetings and sports activities for 

this winter season. This represents an estimated 40,894 

room nights and a total direct spending of $23 million 

into the local economy, Meet Puerto Rico President Milton 

Segarra said Monday..."