Madagascar Development

Jan 28 (Reuters) - Puerto Rico is negotiating with at least two bond insurers to insure around $500 million of a planned $2 billion bond issue, which would extend the appeal of the sale beyond the hedge funds currently buying the U.S. commonwealth's debt, according to two sources close to the process. The island's Government Development Bank (GDB) is in talks with MBIA's National Public Finance Guarantee Corp and Assured Guaranty, the sources said. The insurers already have substantial exposure to Puerto Rico's debt and may be trying to protect their exposure in other areas by helping Puerto Rico raise more money, the sources said. The insured part of the deal would have a coupon of 5 percent, according to the sources. Assured Guaranty did not respond to a request for comment. MBIA declined to comment. "The insurance companies don't want to do it but they are being leveraged into doing so because of their exposure to Puerto Rico Electric Power Authority (PRE

The Commonwealth of Puerto Rico has a long history of fiscal uncertainty and structural deficits. Responding to decades of general fund deficits in 2014, the rating services lowered the ratings on the Commonwealth’s general obligation credit to below investment grade, or junk status. The rating services downgraded Puerto Rico’s general obligation rating to BB (non-investment grade) in February 2014. The rating action had been long anticipated by the municipal market. The yields on the Commonwealth’s general obligation bonds exceeded 10% the month prior to the downgrade.  Enlarge This Image  Enlarge This Image The Puerto Rico Corporations Debt Enforcement & Recovery Act (the Recovery Act), adopted on June 28, 2014, generated a subsequent wave of downgrades in July 2014. The ratings agencies notched downward Puerto Rico’s general obligation rating and Moody’s downgraded several public corporations a full rating grade to ‘Caa.’ Moody’s cited as the rationale for the s

Puerto Rico’s Acts 20 & 22, tax incentive laws aimed at luring wealthy American investors to move there and at reviving the Island’s economy, are celebrating their third anniversary this month. While Puerto Rico’s economic situation remains bleak (it currently has more than $73 billion of “ junk ” status debt, unemployment over 13% and income inequality higher than any of the 50 states), its reputation as a tax haven is beginning to catch on . Now, the Island is trying to build on this momentum by expanding who can use the tax breaks; one amendment  is aimed at enticing successful Puerto Ricans who have left the Island to return. The original Act 20 & 22 combo Act 20, the Export Services Act , offers incentives to certain service businesses, including investment and hedge fund managers, to relocate to Puerto Rico and export their services. It does so by taxing their corporate profits at a flat 4%, while making the dividends paid from profits on exported services 100% tax exe

Welcome to our live coverage of the 2015 World Economic Forum at Davos! The Reuters team is in the field to provide you with unique content, commentary, photos and video on all things Davos throughout the week. Bookmark this live blog for news from the Forum as well as behind-the-scenes sights and sounds. You won't miss a minute of the #WEF15 action here. by cassandra.garrison January 19 at 5:43 AM The 2015 World Economic Forum is officially underway and Davos is buzzing with activity as business leaders, politicians, journalists and celebrities flock to town. Here's a fun time-lapse shot by Reuters reporter Julian Satterthwaite. by cassandra.garrison 6:46 AM World Economic Forum Annual Meeting in Davos, Switzerland | Reuters.com

The Swiss drugmaker confirmed it will close its facility in Humacao today. telling in-Pharmatechnologist.com the decision — which will result in the loss of 270 jobs - followed a review of its manufacturing network A spokesman told us “Novartis continually reviews its manufacturing infrastructure and capacity, Including the number and size of its sites. to ensure we have the right production capacity in place to meet market demand, support our products and pipeline, and maximize productivity. Novartis Consumer Health decided to close Humacao m a phased manner over time following such a review of manufacturing infrastructure and capacity.” Production of the consumer health drugs - Gas-X (simethicone) and the laxative Ex-Lax — will be transferred to Novartis’ site in Lincoln. Nebraska as will the packaging of Novartis’ ulcer treatment, Prevacid Novartis will outsource production and packaging of the animal health products made in Humacao - Sentinel. Interceptor. and Milbemax — to fac