The government of Puerto Rico is a republican form of government with separation of powers, subject to the jurisdiction and sovereignty of the United States. Article I of the Constitution of Puerto Rico defines the government and its political power and authority pursuant to U.S. Pub.L. 82–447. Said law mandated the establishment of a local constitution due to Puerto Rico's political status as a commonwealth of the United States. Ultimately, the powers of the government of Puerto Rico are all delegated by Congress and lack full protection under the U.S. Constitution. Because of this, the head of state of Puerto Rico is the President of the United States.
The Government Development Bank for Puerto Rico (GDB) —Spanish: Banco Gubernamental de Fomento para Puerto Rico (BGF)— is the government bond issuer, intragovernmental bank, fiscal agent, and financial advisor of the government of Puerto Rico. The bank, along with its subsidiaries and affiliates, serves as the principal entity through which Puerto Rico channels its issuance of bonds. As an overview, the different executive agencies of the government of Puerto Rico and its government-owned corporations either issue bonds with the bank as a proxy, or owe debt to the bank itself.
Alfredo Salazar is an economist by education and a banker by profession. He is currently retired. He entered into public service and ran for an elected position affiliated with the Popular Democratic Party of Puerto Rico (PDP). He ran for the office of Resident Commissioner of Puerto Rico in the United States Congress in the 2008 elections. Prior to running for Congress, he served as Chairman and President of the Puerto Rico Government Development Bank (GDB) and financial advisor to the then governor of Puerto Rico, Aníbal Acevedo Vilá. He had previously served as President of the Puerto Rico Industrial Development Company and GDB president during the first administration of Gov. Rafael Hernández Colón in the mid seventies and Head of the Economic Development Administration during Hernández Colón third administration.
The economy of Puerto Rico is classified as a high income economy by the World Bank and as the most competitive economy in Latin America by the World Economic Forum. The main drivers of Puerto Rico's economy are manufacturing, primarily pharmaceuticals, textiles, petrochemicals, and electronics; followed by the service industry, notably finance, insurance, real estate, and tourism. The geography of Puerto Rico and its political status are both determining factors on its economic prosperity, primarily due to its relatively small size as an island; its lack of natural resources used to produce raw materials, and, consequently, its dependence on imports; as well as its relationship with the United States federal government, which controls its foreign policies while exerting trading restrictions, particularly in its shipping industry.
Academic and Professional Background (1982-1992)
Carlos M. García, born on June 25, 1971, in Mayagüez, Puerto Rico, is a Puerto Rican banker, public servant, and private equity investor who served as president of the Puerto Rico Government Development Bank (GDB) from 2009 to 2011 during the administration of Governor Luis Fortuño.
The executive branch of the government of Puerto Rico is responsible for executing the laws of Puerto Rico, as well as causing them to be executed. Article IV of the Constitution of Puerto Rico vests the executive power on the Governor—whom by its nature forms the executive branch.
The Office of the Chief of Staff of the Governor of Puerto Rico is the umbrella organization and government agency of the executive branch of the government of Puerto Rico that manages and oversees all the executive departments of the government of Puerto Rico and almost all executive agencies. The Office is headed by the Puerto Rico Chief of Staff and is composed by the Governor's Advisory Board and all other staff appointed by the chief of staff. The Office of the Chief of Staff is ascribed to the Office of the Governor.
The Puerto Rico Urgent Interest Fund Corporation —Spanish: Corporación del Fondo de Interés Apremiante (COFINA)— is a government-owned corporation of Puerto Rico that issues government bonds and uses other financing mechanisms to pay and refinance the public debt of Puerto Rico. The Corporation is a subsidiary of the Government Development Bank and was created by Law No. 291 of 2006. Bonds issued by COFINA are called Puerto Rico Sales Tax Revenue Bonds.
The public debt of Puerto Rico is the money borrowed by the government of Puerto Rico through the issue of securities by the Government Development Bank and other government agencies.
The Budget of the Government of Puerto Rico is the proposal by the Governor of Puerto Rico to the Legislative Assembly which recommends funding levels for the next fiscal year, beginning on July 1 and ending on June 30 of the following year. This proposal is established by Article IV of the Constitution of Puerto Rico and is presented in two forms:
The Puerto Rico Municipal Financing Agency (MFA) —Spanish: Agencia para el Financiamiento Municipal de Puerto Rico (AFM)— is the municipal bond issuer and an intragovernmental bank of the government of Puerto Rico. The Agency is a government-owned corporation of the government of Puerto Rico and a principal affiliate of the Puerto Rico Government Development Bank.
The Puerto Rico Public Finance Corporation (PFC) —Spanish: Corporación para el Financiamiento Público de Puerto Rico (CFP)— is the government-owned corporation that issues bonds to finance the different agencies of the executive branch of the government of Puerto Rico. The corporation is a subsidiary of the Puerto Rico Government Development Bank.
Melba Acosta Febo is a corporate executive, attorney, and certified public accountant. She is a former president of the Government Development Bank of Puerto Rico and a former chief public finance officer of Puerto Rico. Acosta also served as the Secretary of the Treasury of Puerto Rico, director of the Puerto Rico Office of Management and Budget and chief of staff of the municipality of San Juan.
The Puerto Rico Maritime Transport Authority —Spanish: Autoridad de Transporte Marítimo (ATM)— is a government-owned corporation of Puerto Rico charged with providing maritime transportation services for cargo and passengers within Puerto Rico, including the island municipalities of Vieques and Culebra. The agency is ascribed to the Department of Transportation and Public Works and was established by Act No. 1 of January 1, 2000(PDF)..
The Puerto Rican government-debt crisis is an ongoing financial crisis affecting the government of Puerto Rico. The crisis began in 2014 when three major credit agencies downgraded several bond issues by Puerto Rico to "junk status" after the government was unable to demonstrate that it could pay its debt. The downgrading, in turn, prevented the government from selling more bonds in the open market. Unable to obtain the funding to cover its budget imbalance, the government began using its savings to pay its debt while warning that those savings would eventually be exhausted. To prevent such a scenario, the United States Congress enacted a law known as PROMESA, which appointed an oversight board with ultimate control over the Commonwealth's budget. As the PROMESA board began to exert that control, the government sought to increase revenues and reduce its expenses by increasing taxes while curtailing public services and reducing government pensions. Those measures further compounded the crisis by provoking social distrust and unrest. In August 2018, a debt investigation report of the Financial Oversight and Management Board for Puerto Rico reported the Commonwealth had $74 billion in bond debt and $49 billion in unfunded pension liabilities as of May 2017.
Christian Sobrino Vega is a Puerto Rican autistic attorney and former public executive who held numerous high-level posts within the Administration of former Governor of Puerto Rico, Ricardo Rosselló. Sobrino holds a B.A. in English from Boston College and a J.D. from the University of Puerto Rico School of Law. Prior to entering public service, Sobrino practiced corporate law in various leading firms in Puerto Rico.
