Puerto Rico House passes Cofina restructuring bill
SAN JUAN – The Puerto Rico House of Representatives passed a bill sent by the administration that amends the “Law of the Urgent Interest Fund” to allow for the restructuring of Sales Tax Financing Corp. (Cofina by its Spanish acronym) debt under Title III of the Puerto Rico Oversight, Management and Economic Stability Act.
House Bill 1837, introduced by Speaker Carlos “Johnny” Méndez Núñez and the majority New Progressive Party, authorizes Cofina to issue bonds as part of its restructuring and establishes the terms, as well as the government-owned corporation’s faculties and its board’s composition and powers. It also establishes Cofina’s ownership of a portion of the island’s sales and use tax (SUT, or IVU by its Spanish acronym) revenue and its use.
In addition, the bill creates a lien to benefit Cofina bondholders, establishes certain agreements in the name of the commonwealth and allows the sale of certain Cofina bonds held by the Puerto Rico Infrastructure Financing Authority. All of which would come in effect on the date Cofina’s debt adjustment plan is consummated.
Among other measures considered, the lower chamber also voted in favor of Senate Bill 984, which would create the “Puerto Rico Energy Cooperatives Law” within the public policy related to the Puerto Rico energy model.