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  #71  
Old 08-29-2016, 12:36 PM
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http://www.theaustralian.com.au/busi...7bc3b14cb15126

Quote:
Puerto Rico’s debt and pension woes come to a head

One of the thorniest tasks awaiting a seven-member board charged by Washington with cleaning up Puerto Rico’s debt crisis is deciding how to balance a $US70 billion ($92.5bn) debt load with nearly $US43bn in unfunded pension liabilities.

The issue is coming to a head now because the White House is set to name as soon as next week the members of that oversight board, drawn from lists of candidates submitted by congressional leaders in both parties.

Puerto Rico’s constitution calls for the island to pay its general obligation bonds ahead of public services or pensions, but a law signed by President Barack Obama in June clouds that hierarchy by directing the new board to ensure pensions are adequately funded.

For the oversight board, “there are no good options here”, said Matt Fabian, a partner at research firm Municipal Market Analytics.

Cutting payouts to debt holders ahead of pensions will inflame creditors, but cutting pension payments to plan members could accelerate the migration and economic decline that the oversight board is tasked with stemming.

Creditors fired a pre-emptive volley last month when they sued the island’s government in federal court after it passed a budget that increases funding for pensions without setting aside money for debt payment.

The budget diverts “vast resources to purposes that apparently enjoy political favour but are indisputably junior to constitutional debt,” the complaint said.

The lawsuit was brought by hedge fund firms that include Aurelius Capital Management, Monarch Alternative Capital and Stone Lion Capital Partners.

Puerto Rico missed more than $US900 million in payments on $US2bn in debts due on July 1, including its first-ever default on general obligation debt.

Bond investors fear that favourable treatment for pensioners in Puerto Rico will reinforce earlier precedents set in distressed municipal workouts in cities such as Detroit and Stockton, California.

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  #72  
Old 08-29-2016, 12:40 PM
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It's really hard to feel bad for vulture hedge funds scooping up firesale debt just to sue governments....
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  #73  
Old 09-07-2016, 03:01 PM
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http://www.bloomberg.com/news/articl...rd-as-positive

Quote:
BlackRock Says Bond Market Views Puerto Rico Board as Positive

Sean Carney calls members ‘modestly friendly’ to investors
Puerto Rico GOs trading at highest price in five weeks

The bond market is viewing a new federal control board charged with overseeing Puerto Rico’s finances as a positive for investors, according to BlackRock Inc.’s Sean Carney.
“Some of the better-secured bonds had a bit of a relief rally after the board was named,” Carney, head of municipal strategy, said Wednesday after a media presentation at the company’s headquarters in Manhattan. BlackRock manages about $124 billion of municipal debt, including Puerto Rico bonds.
President Barack Obama last week appointed seven members to the board from lists submitted by congressional leaders of both parties. The panel must curb the island’s recurring budget shortfalls, oversee any restructuring of its $70 billion of debt and address a $43 billion unfunded pension liability.
“The names that were put on the board seem to be modestly friendly for bondholders, but it’s going to be a very long and drawn out process,” Carney said. “We don’t know what questions they’re going to have to answer or what hurdles they’ll have to clear. So there’s still a lot of unknown, but I think the market appreciated a little bit of certainty in an uncertain environment.”
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  #74  
Old 09-27-2016, 06:09 PM
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https://www.yahoo.com/news/64-000-pu...192746496.html

Quote:
SAN JUAN, Puerto Rico (AP) — The number of Puerto Ricans who fled the island in 2015 equaled a record set the previous year amid an economic crisis that is suffocating the U.S. territory, officials announced Thursday.

About 64,000 Puerto Ricans left last year, matching the highest number reported in the past 11 years, according to the island's Institute of Statistics.

"This is worrisome," demographer Raul Figueroa said in a phone interview. "In economic terms, the workforce is shrinking. But the age is an even bigger concern. The elderly population has increased because so many young people are leaving."

He estimated that Puerto Rico's population is currently below 3.4 million, and that it could drop to less than 3.2 million in upcoming years, adding that the median age is 40 years old.

The exodus escalated in 2014, when officials reported a 31 percent increase in departures compared with the previous year. The vast majority of Puerto Ricans are settling in the U.S. mainland, leaving behind an island facing an uncertain future as a federal control board prepares to oversee the government's finances and help restructure a portion of the nearly $70 billion public debt load that the governor has said is unpayable.

The Institute of Statistics also announced that Puerto Rico's median household income stands at $18,626, dropping nearly 2 percent between 2014 and 2015. Officials also noted that 46 percent of the population lives below the poverty line.
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  #75  
Old 10-03-2016, 04:01 PM
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well, that PREPA was bankrupt becomes a little more clear... they were giving away energy for free (kind of)

http://caribbeanbusiness.com/prepa-c...lt-amendments/

Quote:
Prepa Clients will now pay for Public Lights Under CILT Amendments


SAN JUAN – The Puerto Rico Energy Commission amended the 2015 regulations on contribution in lieu of taxes (CILT) enjoyed by the island’s 78 cities to pass on to consumers the costs of public lights.

The CILT is a payment made by the Puerto Rico Electric Power Authority (Prepa) to compensate cities for the tax revenue they lose because of the utility’s use or ownership of their public property.

Because the costs of the public lights will not be part of the CILT, cities will not get any money from Prepa for whatever they spend to maintain or keep public street lights, which means they will lose revenues at a time when more than half of Puerto Rico’s cities are in deficit.

Prepa will do an inventory of all public street lights, including the ones located in private streets, which will be disconnected. Homeowners living in private streets will now have to pay to have their own street lights and will have to go to Prepa to get reconnected.

The amendments to Regulations No. 8653 on the CILT, which were issued over week ago, state that the costs of having public street lights will be shared by all of Prepa’s consumers.

Each client will get in the utility bill a detailed list of the amount paid in CILT and the costs of other subsidies, including payments for public street lights.

The amendments to the regulations take place after the enactment of a law in February that reduced subsidies granted by Prepa.

and just.... what an awful acronym. I will leave it at that.
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  #76  
Old 10-04-2016, 01:34 PM
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http://www.wsj.com/articles/puerto-r...man-1475256089

Quote:
Puerto Rico Debt Board Names Jose Carrion III as Chairman
Demonstrators stage protest outside New York meeting as San Juan insurance executive appointed to lead seven-member board

NEW YORK—Puerto Rico’s fiscal control board appointed Jose Carrion III chairman and set a two-week deadline for the commonwealth to produce a financial plan during its first meeting Friday morning.

The meeting attracted about 50 demonstrators who surrounded the entrance to the Alexander Hamilton U.S. Custom House in downtown Manhattan, where the meeting was held. A few protesters interrupted the meeting, shouting slogans such as “down with colonialism” and “shame on you” before being escorted out.

Congress created the seven-member fiscal control board under legislation enacted in June, which gives Puerto Rico a path to restructure its roughly $70 billion dollars in bond debt.

Mr. Carrion, the newly selected chair, is an insurance executive based in San Juan, Puerto Rico, and a Republican-sponsored appointee to the board, which has four candidates submitted by Republicans and three from Democrats.


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  #77  
Old 10-04-2016, 02:55 PM
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Quote:
Originally Posted by campbell View Post
and just.... what an awful acronym. I will leave it at that.
French Connection (also branded as FCUK) is a UK-based global retailer and wholesaler of fashion clothing, accessories and homeware. Founded in the early 1970s by Stephen Marks, who remains chief executive, it is based in London and its parent French Connection Group PLC is listed on the London Stock Exchange.
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  #78  
Old 10-04-2016, 03:28 PM
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Originally Posted by Klaymen View Post
French Connection (also branded as FCUK) is a UK-based global retailer and wholesaler of fashion clothing, accessories and homeware. Founded in the early 1970s by Stephen Marks, who remains chief executive, it is based in London and its parent French Connection Group PLC is listed on the London Stock Exchange.
That one was on purpose, to seem edgy.

I don't think any governmental entity (well, not until Trump becomes president) wants to come across as "edgy".
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  #79  
Old 10-14-2016, 05:16 PM
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http://www.nbcnewyork.com/news/local...397112161.html

Quote:
Fiscal Board Imposes New Rules on Puerto Rico Amid Crisis


A new federal control board overseeing Puerto Rico's finances amid a dire economic crisis voted on Friday to expand its powers and require indebted public agencies to be more accountable as members grilled the island's governor for the first time about the U.S. territory's economy.

The board said no Puerto Rico government agency can proceed with any non-routine transaction without its permission, such as issuing debt.

Massive Blackout Strikes Puerto Rico, Millions Without Power

It also demanded that six public agencies including the Government Development Bank, the island's largest public university and its utility companies submit their own fiscal plans for the first time.

The measures drew ire from protesters who interrupted the Friday meeting in New York with yells of "Shame on you!" and "Long live a free Puerto Rico!" The gathering was streamed online.

The federal control board was created in late June after U.S. President Barack Obama signed a rescue package that in part aims to restructure some of the island's nearly $70 billion public debt and temporarily protect it from creditor lawsuits seeking to recover millions of dollars invested in local government bonds.

Those creditors have since sued to recover their money and a judge is mulling over the case.
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  #80  
Old 11-02-2016, 03:27 PM
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https://twitter.com/cate_long/status/793789071957131269

Quote:
Listing of lawsuits filed against Puerto Rico govt related to debt moratorium and clawbacks from @cpipr #muniland
https://docs.google.com/spreadsheets...gid=1529867551
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