Thursday, April 27, 2017

Fiscal board to hold 7th meeting next week

By on April 21, 2017

Fiscal board Chairman José Carrión III (Juan J. Rodríguez/CB)

Fiscal board Chairman José Carrión III (Juan J. Rodríguez/CB)

SAN JUAN – The fiscal control board will hold its seventh public meeting Friday, April 28, in New York, Chairman José Carrión told Caribbean Business.

At the new meeting, “most” of the fiscal plans submitted by five Puerto Rico government entities will be discussed and certified. However, Carrión did not provide details about which entities will have their plan certified by May 1, when Promesa’s stay on litigation expires.

Nearly two months have elapsed since the government of Puerto Rico submitted to the board the fiscal plans for the Government Development Bank (GDB), the Aqueduct & Sewer Authority (Prasa), the Highways & Transportation Authority (HTA), the Cooperatives Supervision & Insurance Corp. (Cossec by its Spanish acronym) and the Electric Power Authority (Prepa).

The certification of a fiscal plan is particularly important for the GDB and the HTA, as some of their creditors have already sued the government of Puerto Rico in federal court. These proceedings will resume once the stay expires, which could jeopardize the operations of both entities.

Gov. Ricardo Rosselló recently told CB that the lack of action on the plans has limited the government, particularly when it comes to negotiating with the creditors of these entities.

Both the board and the Rosselló administration have told CB that they will not disclose information about the entities’ fiscal plans until the board certifies them.

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