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 (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.
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.
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.
NEW YORK, Oct 9 (Reuters) – Moody’s “manipulated” public
pension data in a way that has presented an excessively bleak
picture of the $3.7 trillion sector, an advocacy group for state
pension funds said in a hard-hitting open letter to the ratings
The letter, dated Oct. 8, follows the publication of a
report by Moody’s last month that claimed public pension
liabilities had tripled to $2 trillion from 2004 to 2012 and
that public pension funds had been taking on greater risk to
make up the shortfall.
NEW YORK, Oct 7 (Reuters) – Bond insurer MBIA was
told two weeks ago about a server breach that compromised the
data of thousands of local U.S. government entities, but it did
not address the problem until earlier this week, according to
the cyber security expert who discovered the intrusion.
MBIA said on Tuesday it had been notified that some client
information at its Cutwater Asset Management unit may have been
NEW YORK (Reuters) – New York’s Metropolitan Transportation Authority passed a 5-year investment program with a $15.2 billion shortfall on Wednesday, and its chief executive said it may take years before the agency secures full funding.
While the first few years of the $32 billion plan would be fully funded, it would cast doubt over out years at a time when the MTA is already facing the prospect of delays to existing projects and growing demands on its aging infrastructure.
NEW YORK (Reuters) – New York’s Metropolitan Transportation Authority, operator of one of the world’s largest public transportation networks, said ahead of a board meeting on Wednesday that it is facing a $15.2 billion shortfall for its infrastructure needs.
In a document posted on its website the MTA said it will “work with its funding partners to identify the additional resources needed to achieve full funding.” It said alternatives include reducing the size of the capital program or increasing fares and tolls.
NEW YORK, Sept 12 (Reuters) – Puerto Rico will aim to sell
$900 million in tax and revenue anticipation notes in the next
30 days to meet near-term cash needs, a source familiar with the
matter said on Friday.
Tax and revenue anticipation notes are standard cash flow
instruments designed to meet expenses throughout the year, but
the deal is likely to attract attention given the U.S.
commonwealth’s financial troubles.
NEW YORK, Aug 13 (Reuters) – A group of creditors that could
be a source of financing for Puerto Rico if it restructures some
of its debt has gained eight new members with an additional $60
billion in assets, including hedge fund Davidson Kempner
Capital Management, the group said on Wednesday.
The creditors, which call themselves the “Ad Hoc Group,” now
have 27 asset managers as members with more than $300 billion in
assets under management. The group says it holds more than $4.5
billion of Puerto Rican bonds.