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Jan 28, 2015

New York speaker absence slowing state budget process

NEW YORK, Jan 28 (Reuters) – The loss of New York Assembly
leader Sheldon Silver from budget negotiations, after he was
charged with corruption last week, could delay the state’s
budget process and threaten recent strides toward better fiscal

Silver has presided over the state’s budget negotiations for
two decades as speaker and is widely seen as having clout,
influence and experience that will be hard to replace.

Dec 23, 2014

U.S. states’ tax revenue returns to growth in Q3 -Census

By Edward Krudy

(Reuters) – U.S. state tax revenues returned to growth in
the third quarter as income tax collections expanded following a
decline in the previous quarter, U.S. Census data released on
Tuesday showed.

Total state tax revenue rose 4.5 percent to $204.8 billion,
up from $196 billion in the same quarter the previous year,
according to the Census Bureau’s quarterly report on state and
local government tax revenues.

Dec 16, 2014

Puerto Rico to seek extension to bondholder agreement -sources

NEW YORK/SAN JUAN, Puerto Rico Dec 15 (Reuters) – Puerto
Rico’s electric power authority, PREPA, is expected to ask
bondholders to extend a forbearance agreement to give it more
time to turn around its struggling operations, according to two
people familiar with negotiations.

PREPA met with bondholders in New York on Monday but did not
deliver a comprehensive 5-year business plan as expected.
Instead it outlined the current challenges facing the utility,
the sources said. PREPA was required to present the plan as part
of the forbearance agreement it signed earlier this year.

Dec 15, 2014

Puerto Rico to present power-authority overhaul ideas to creditors

NEW YORK/SAN JUAN, Puerto Rico (Reuters) – Restructuring experts will present different scenarios to overhaul Puerto Rico’s troubled electric power authority (PREPA) to creditors on Monday, but will stop short of recommending job cuts, the president of PREPA’s board said in a statement.

The proposals, which will not be made public, were prepared by Chief Restructuring Officer Lisa Donahue of Alix Partners as part of an agreement with creditors.

Nov 27, 2014

Puerto Rico threatened with transit shutdown in political spat

By Edward Krudy

(Reuters) – Puerto Rico’s public transit system will shut down on Monday if lawmakers do not increase a tax on oil, the U.S. commonwealth’s Government Development Bank said, accusing politicians of taking an “irresponsible” gamble on the island’s economy.

The possible shutdown of Puerto Rico’s buses and commuter train services, affecting 75,000 commuters, would be a major escalation of the island’s debt crisis and would threaten its fragile economy.

Nov 25, 2014

FBI raids Puerto Rico sewer authority PRASA

NEW YORK/SAN JUAN, Puerto Rico, Nov 25 (Reuters) – The U.S.
Federal Bureau of Investigation launched a surprise raid at
Puerto Rico’s Aqueduct and Sewer Authority (PRASA) on Tuesday in
a probe the head of the commonwealth agency said was focused on
a single case and not the entire agency.

“They came for some very specific information that we openly
provided regarding one case,” Executive President Alberto Lazaro
said in a telephone interview.

Oct 20, 2014

Puerto Rico forecast assumes $1.3 bln financing by year-end

NEW YORK, Oct 20 (Reuters) – Puerto Rico’s Government
Development Bank (GDB), the financing arm of the troubled U.S.
commonwealth, will require around $1.3 billion in market
financing by the end of December to meet its liquidity
forecasts, according to a recent update from the GDB.

The financing, aimed at shoring up the GDB’s liquidity
position, would include $1 billion of a loan made to the Puerto
Rico Highway and Transportation Authority (PRHTA) by the GDB
and the remaining balance of $292 million of $400 million in
PRHTA’s short-term bond anticipation notes.

Oct 15, 2014

Puerto Rico emphasizes liquidity in finance team shake up

Oct 15 (Reuters) – Puerto Rico’s governor nominated Treasury
Secretary Melba Acosta Febo as president of the Government
Development Bank (GDB) on Wednesday in a move that places more
emphasis on the financing needs of the troubled U.S.

The move, part of a broader shake-up of the government’s
economic team, will be of interest to investors in the island’s
more than $70 billion in debt. It comes at a time when the
government is trying to make good on its promises to balance the
budget, kick-start the economy and manage liquidity.

Oct 10, 2014

Puerto Rico pays heavy price in $1.2 billion note sale

NEW YORK (Reuters) – Puerto Rico paid a steep price to complete a $1.2 bln short-term financing deal on Friday as bonds of the indebted commonwealth slipped to a three-month low and recent data showed the economy and tax revenues remain weak.

Puerto Rico paid an interest rate of nearly 8 percent to borrow from a syndicate of banks until next June, the commonwealth’s Government Development Bank (GDB) said on Friday, a hefty premium compared with top-rated municipal borrowers, who pay about 0.13 percent to borrow for a year.

Oct 9, 2014

Puerto Rico’s tax revenues unexpectedly drop in September

NEW YORK, Oct 9 (Reuters) – Puerto Rico’s tax revenues
unexpectedly fell in September as nearly every tax category
missed the government’s forecast, casting doubt on the ability
of the heavily indebted U.S. commonwealth to balance its budget.

September revenues fell to $709 million, a drop of 3 percent
compared to the same period last year, and $46 million shy of
the governments forecast, Puerto Rico’s Treasury Department said
in a statement on Thursday.

    • About Edward

      "Ed Krudy leads a team covering the U.S. equity market from New York, where he has been since 2009. Prior to that he set up Thomson's new bureau in Budapest, where he initiated coverage of economic, political, market and company news."
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