In the latest sign of Puerto Rico’s perilous financial footing, The Bond Buyer reported that the president of the Government Development Bank of Puerto Rico, Javier Ferrer, announced his resignation on Wednesday.
In this role Ferrer had the leading role overseeing and advising the debt of the Puerto Rico government and public authorities. The bank also lent to the government and authorities.
Puerto Rico Gov. Alejandro García Padilla announced that Joseph Pagan, currently executive vice president of financing at the GDB, will be the interim president.
The GDP has acted as a fulcrum under the government’s finances, often by borrowing for one entity and then lending those funds to another entity. Unfortunately, the GDB has run out of space on its balance sheet to continue.
Meanwhile, a Puerto Rico politician, Waldemar Quiles, has challenged Padilla to confirm that he will appoint Treasury Secretary Melba Acosta as head of the GDB, according to Metro PR (Spanish).