Puerto Rico government account balances grow
A summary of the bank account balances of the government of Puerto Rico showed they grew by $263 million in a month from April 30 to May 31.
The balance – obtained from some 800 bank accounts whose data is now centralized – stands at $8.9 billion, a growth from $8.6 billion.
According to a report put out by the Puerto Rico Fiscal Agency & Financial Advisory Authority (FAFAA) this week, the hike was driven by a $267 million increase in central Government’s Treasury Single Account (TSA) balance, $48 million hike in Pension Related funds and $26 million for Public Corporations and Legally Separate Entities.
The hike took place although there was a $62 million reduction in Non-TSA Central Government funds and $17 million reduction in Restricted Accounts that are subject to Title III proceedings. Non-TSA Central Government balances are concentrated in the Public Housing Authority, lottery related funds, Department of Labor funds and the Child Support Administration.
FAFAA started its efforts to identify government bank accounts and their balances to obtain a comprehensive view of the cash position of the Government. Requests were sent to governmental instrumentalities, the Office of the Commissioner of Financial Institutions and various commercial banks.
“The exercise and the inventory described in this presentation, which had not been conducted by prior administrations, obtained information on plus 800 bank accounts. FAFAA now has centralized access to bank account information for most of the Government. Aafaf has conducted this process in consultation with the Financial Oversight and Management Board (FOMB) and its advisors, and has been providing periodic reports to the FOMB since July 2017,” the report states.
The information excludes balances from the cities, Legislature and the courts. It also excludes investment accounts.