Madagascar Development

Puerto Rico bonds rallied in high volume on Friday, pushing yields lower after lawmakers agreed to a series of tax measures late on Thursday that could help stabilize the island's finances and pave the way for a new financing deal. Yields fell on the island's general obligation bonds (GOs), as well as on bonds backed by sales tax revenues, after lawmakers said they would increase the sales tax to 11.5 percent from the current 7 percent in a package of tax measures. The agreement, which needs to be ratified by the legislature, would raise tax revenues by $1.2 billion, officials said, and could help Puerto Rico avoid a government shutdown while allowing it to raise as much as $2.95 billion in financing. "It's good for the GOs and also I think it's good for the sales tax revenue bonds even more so because you are going to be generating so much more sales tax proceeds," said Howard Sitzer, a municipal debt analyst at CreditSights. The agreement provides clarity af...

Puerto Rico's governing party reached a tentative agreement on new tax measures, officials said Thursday, potentially avoiding a government shutdown and paving the way for a bond deal that could raise as much as $2.95 billion. Under the terms of the agreement, which must be formally voted on in the legislature, Puerto Rico will increase its existing sales tax to 11.5 percent from its current 7 percent, while moving to a value added tax (VAT) within a year, according to Governor Alejandro Garcia Padilla. If ratified, the agreement would help remove a major uncertainty for the U.S. territory which is struggling with $72 billion in debt and a stagnating economy. Puerto Rico's budget plans have been is disarray after an earlier VAT proposal was defeated in the House of Representatives last month when six lawmakers from the governor's Popular Democratic Party (PDP) refused to back it. Padilla said the government would gain $1.2 billion in tax revenues under...

Puerto Rico’s Senate approved a bill, with amendments, that increases the cash-strapped island’s sales tax, potentially raising revenue that will help balance the fiscal 2016 budget. The Senate passed the measure Monday in a 14-12 vote, with an amendment to exempt certain processed foods. The amended bill now goes back to the House of Representatives, which narrowly approved the sales-tax hike last week. Governor Alejandro Garcia Padilla and lawmakers from his ruling Popular Democratic Party agreed on a framework for the tax boost May 14. The bill would raise the levy to 11.5 percent from 7 percent through March, after which it would transition into a value-added tax. “The time has come in which we need to be responsible to the country and not do the same thing that’s been done in the past,” said Senator Jose Nadal Power, chairman of the Senate Finance Committee, referring to the $72 billion of the government and its agencies have accumulated. “We have obligations that we have to ful...

The Puerto Rico Senate approved Monday the tax bill that calls for the implementation of an 11.5% sales tax at cash registers, up from the current 7% paid under the sales & use tax (IVU by its Spanish acronym), after being approved Thursday by the House of Representatives amid much debate and opposition. However, it will still need to be ratified by the lower chamber after amendments were introduced by the Senate before voting on it. The bill was passed with 14 yea and 12 nay votes, which included Popular Democratic Party (PDP) Sens. Ángel Rosa, Antonio Fas Alzamora and Gilberto Rodríguez, as well as the New Progressive Party delegation and Puerto Rico Independence Party Sen. María de Lourdes Santiago. PDP Sen. Rossana López didn’t attend the session. It now heads back to the House for a decision on the changes introduced by the Senate. Among the several amendments introduced on the floor by the lower chamber, one called for applying the 11.5% sales tax on frozen, refrigerated, ca...

Puerto Rico's governor is reviving his push for a value-added tax despite previous opposition from legislators as concerns grow about the U.S. territory's economic crisis and the government's ability to fix it. Gov. Alejandro Garcia Padilla told reporters Tuesday that legislators from his party are debating a 13.25 percent value-added tax as one option. If that proposal is approved, it would be accompanied by $300 million in budget cuts, he said. But if a lower tax is approved, cuts will increase to $500 million, said Garcia. "We have reached the point where we have to solve this problem," he said. "Those who are worried about the crisis have reason to be concerned." Garcia, whose party controls the legislature, said he will meet with additional lawmakers and government officials Thursday to craft a final bill that he believes will be approved. He said that if a value-added tax is approved, it would be implemented in stages. "I am not offering mag...

Resident Commissioner Pedro Pierluisi issued the following statement regarding yesterday’s oral argument before the United States Court of Appeals for the First Circuit on the constitutionality of the “Puerto Rico Public Corporation Debt Enforcement and Recovery Act,” and highlighted that the arguments made by the plaintiff bondholders in that case undercut the arguments these same bondholders are making to oppose Pierluisi’s bill to include Puerto Rico in Chapter 9 of the federal Bankruptcy Code: “Puerto Rico, unlike the states, is not entitled to authorize its insolvent municipalities—including its government-owned corporations—to seek protection under Chapter 9.  Puerto Rico’s exclusion led the territory’s government, in July 2014, to enact the Recovery Act, which sought to authorize certain government-owned corporations to restructure their debts. Several investment firms that own bonds issued by Puerto Rico’s electric power authority, PREPA, sued the Puerto Rico government, ...

Puerto Rico's governor said Friday he will soon submit one of the most austere budgets in the island's history and appealed to President Barack Obama's administration and a divided local legislature to work together in finding solutions for the U.S. territory's fiscal crisis. The call from Gov. Alejandro Garcia Padilla came just hours after Puerto Rico's Government Development Bank released a report warning of a possible moratorium on debt payments. The bank also said it and the government could run out of money in the first quarter of fiscal year 2016 if new revenue isn't generated soon. "Liquidity is significantly strained," the report said. Bank officials also said the government might not have enough money to fund public programs and services and honor debt payments unless it goes through with a planned bond sale or approves an alternate measure to raise money. Puerto Rico is struggling to raise new revenue as it faces $72 billion in public debt. ...

The island of Puerto Rico is many things: a tropical paradise, a U.S. territory and an economic mess. After years of deficits, state-owned institutions in Puerto Rico owe investors some $73 billion. That's four times the debt that forced Detroit into bankruptcy two years ago. The bill is now due. One of the most visible signs of the crisis is a tent city on the plaza in front of Puerto Rico's historic Capitol building in San Juan. For several weeks, a group of protesters has been camped out, with signs, rallies and music. The group is opposing plans by Gov. Alejandro Garcia Padilla to raise taxes to help cover Puerto Rico's crippling debt. Labor organizer Javier Lopez says, "We want fair reform. Those who have more should pay more, not the working poor." For months now, the financial crisis has been front page news in Puerto Rico, and people are getting angrier. PR GU RI MA CT NH NJ VT HI AK NY WV ME DE IL WI KY MT SC NM MD WA LA SD PA IN MI MO CA MS OR VA OH ...

Puerto Rico bonds fell to a new low Thursday as its financial crisis deepened. The Commonwealth’s general obligation bond maturing in July 2035 was selling for just 78.5 cents on the dollar Thursday morning. The latest in a collection of increasingly grim headlines came across the wires after legislators rejected the Governor’s tax plan in a Wednesday night vote. Gov. Alejandro Garcia Padilla warned the ‘no’ vote could bring the Commonwealth’s finances to the brink. It was just one week ago that top finance officials warned the government could shut down in a matter of months if the legislature doesn’t pass tax increases that would pave the way for the Commonwealth to borrow more money from investors. The real problem with the vote is that it indicates there is political discord brewing, says David Tawil , portfolio manager at Maglan Capital , which invests in distressed debt, but is currently avoiding Puerto Rico. “It was a surprise that it did not go through,” Tawil says. “Now...

Due to the shortage of liquidity and the lack of access to traditional banking and bond markets, it is imperative to take the measures necessary to first close the budget and projected cash flow gap for the current FY, including implementing immediate measures to reduce expenses…. All these measures are key elements in this effort and delaying their approval puts at risk the financial stability of the government. Investors were unimpressed by the legislature's reluctance to lift taxes, and sent the yield of the $3.5bn bond issued early last year – before debt markets slammed shut for the island – to a new high of 10.6 per cent, up 34 basis points on the day. Puerto Rico's governor Alejandro Garcia Padilla was also unhappy, and said in a statement that legislators that voted against the bill put the future of the country at risk to further their personal agenda, according to Reuters . The lawmakers who voted against the measure will have to answer to history for their irrespo...

Standard & Poor's has downgraded Puerto Rico's general obligation debt as legislators debate how to overhaul the U.S. territory's tax system and generate more revenue amid a financial crisis. The credit rating agency says Puerto Rico's market access has weakened and expressed concern about a lack of consensus as the government prepares its 2016 fiscal budget. The announcement made late Friday comes just days after Puerto Rico's Government Development Bank warned the government could be forced to shut down in three months given a lack of funds. The bank also said the government's fiscal problems could prevent it from accessing the capital market. Puerto Rico has said it plans to issue more than $2 billion in general obligation bonds as the island struggles to reduce $73 billion in public debt. S&P further downgrades Puerto Rico's general obligation debt

La agencia Standard and Poor's (S&P) bajó de nuevo la calificación de las Obligaciones Generales de Puerto Rico, que ya se encontraban en terreno especulativo (de bonos "basura"), y de varias de sus instituciones públicas, además de colocar con perspectiva negativa la deuda del Estado Libre Asociado. S&P difundió hoy en su dirección en internet varios comunicados en los que recoge las degradaciones otorgadas, además, a la deuda de la Corporación del Fondo de Interés Apremiante (COFINA) y el Sistema de Retiro del Gobierno. Así como a la Autoridad para el Financiamiento de la Infraestructura (AFI), la Autoridad del Distrito de Convenciones y la Autoridad de Transportación y Carreteras (ACT). A todas esas instituciones públicas S&P les concede perspectiva negativa y advierte que la vigilancia bajo esta perspectiva responde a la falta de consenso entre las autoridades de Puerto Rico sobre el presupuesto del año fiscal 2016, lo que podría generar todavía más pro...

Standard & Poor’s Ratings Services has downgraded Puerto Rico to CCC+ from B and placed the rating on CreditWatch with negative implications. The ratings firm attributed the downgrade to “our view that the commonwealth’s market access prospects have further weakened and Puerto Rico’s ability to meet its financial commitments is increasingly tied to the business, financial, and economic conditions on the island.” S&P believes “budget pressures are exacerbated by current weak economic trends and high debt levels.” Puerto Rico’s government may run out of money and have to shut down in the next three months, with a “devastating impact” for the U.S. commonwealth’s economy, officials at the island’s Government Development Bank warned in an April 21 letter. Puerto Rico has more than $70 billion in debt and is struggling with a weak economy and high unemployment. Write to   Josh Beckerman at   josh.beckerman@wsj.com By J osh Beckerman Commonwealth is struggling with weak econ...

Puerto Rico finance officials warn a government shutdown may be only months away. Puerto Rico is saddled with $70 billion in debt and has been unable to sell the billions in bonds it needs to avoid running out of money. Heidie Calero, a business consultant there, says the question is whether Puerto Rico's lawmakers will overhaul the tax system. "Right now we have so many suspense stories that it's really terrible," she says. This crisis didn't happen overnight. Government spending has outpaced revenue for years. U.S. tax breaks made the island attractive for businesses, and Puerto Rico had itself a moment. Those tax credits ended, but spending went on. "From investment grade that we were before, a very coveted financial paper, we are now the status of junk," Calero says. Luiz Mesquita, a business professor at Arizona State, blames mismanagement. Take the troubled Puerto Rico Electric Power Authority, which is state run. "And because of these m...

MANCHESTER, England, Apr 23, 2015 (PR Newswire Europe via COMTEX) -- MANCHESTER, England, April 23, 2015 /PRNewswire/ -- Non-stop services to four different cities in four different countries will begin operating in November 2015 Norwegian is launching in November 2015 new non-stop services from Puerto Rico to Stockholm, Copenhagen, Oslo and London. The airline will be operating to London Gatwick Airport twice weekly (Wednesday and Saturday) and weekly services to Copenhagen (Friday, returning via St Croix), Stockholm Arlanda (Tuesday) and Oslo Gardermoen (Sunday). All flights will be operated with a Boeing 787-8 Dreamliner. ASM has been working in partnership with the Puerto Rico Tourism Company and Aerostar Airport Holdings over the past 18 months to attract Norwegian to fly non-stop between London and Scandinavia and Puerto Rico. The discussions with the airline started at World Routes in Las Vegas in 2013 and continued with subsequent head office visits in Fornebu, to present ...

Puerto Rico's recent announcement that it will miss a May 1 deadline to file 2014 financial statements could count as a default if left unresolved for more than 30 days, according to a research note from Moody's Investors Service on Thursday. "Legal documents of that transaction stipulate the GDB (Government Development Bank) will use 'commercially reasonable efforts' to post audited financial statements, also by May 1 each year," Moody's said. "The failure to make such efforts to publish annual financial documents might constitute a default if left uncured for 30 days under the terms of the loan agreement." Puerto Rico will not be able to file audited 2014 financial statements by the May deadline, the GDB said in a bondholder filing on Tuesday. Moody's said that while the delay was a credit negative it did not in itself alter its view of Puerto Rico's finances, although it did raise questions about the government's commitment to ...

Three months. That is how long the Puerto Rico government has before it could run out of money, according to the island’s top finance officials. The warning came in an unusual letter to the commonwealth’s governor and the heads of the House and Senate from the Government Development Bank, which oversees all of Puerto Rico’s debt deals. The letter, which was sent this week, was meant to underscore the need for Puerto Rico lawmakers to act quickly to address the island’s fiscal problems, officials said. Lawmakers have been squabbling over a plan to overhaul the commonwealth’s tax system to generate sorely needed revenue. That debate has held up Puerto Rico’s plan to sell as much as $2.95 billion in bonds — a critical source of liquidity — because potential investors want to see the commonwealth’s long-term fiscal plan before agreeing to lend more money. Without that long-term bond deal, and another shorter-term financing that Puerto Rico needs to complete this summer, the government’s li...

Puerto Rico will run out of money in three months and its government be forced to shut down unless it manages to pass tax reform measures and finalize a budget, wrote Puerto Rico Government Development Bank head David Chafey Jr in a letter to the heads of the Puerto Rican Senate and House. “For us to be able to borrow from traditional investors or hedge fund investors, they will say show me your plan and show your budget,” said Chafey, reports Michael Corkery for the New York Times . Chafey trying to force legislative action Puerto Rico has been struggling with high debt and weak growth for a couple of years now, and a bond issue last year was supposed to give it enough time (ie liquidity ) to push through difficult reform measures and get its budget under control, and at least headed toward balanced. That has happened, and when a restructuring law was struck down in February it put investors on notice that the commonwealth is still very much at risk of default. It’s understand...

Flights to Puerto Rico - San Juan from London-Gatwick Select wanted outbound and return date. Press "Show flight departures" to continue. Show flight departures Fly from - Select departure - Aalborg (AAL) Lanzarote (ACE) Ålesund (AES) Alicante (ALC) Stockholm-Arlanda (ARN) Barcelona (BCN) Bergen (BGO) Copenhagen (CPH) Dubrovnik (DBV) Algarve-Faro (FAO) Rome-Fiumicino (FCO) Fuerteventura (FUE) Gothenburg-Landvetter (GOT) Helsinki (HEL) Marseille-Provence (MRS) Nice (NCE) Oslo-Gardermoen (OSL) Mallorca-Palma (PMI) Split (SPU) Stavanger (SVG) Tenerife (TFS) Tromsø (TOS) Trondheim (TRD) Sandefjord-Torp (TRF) ------------------------------ --- Austria --- Salzburg (SZG) Vienna (VIE) --- Bosnia-Herzegovina --- Sarajevo (SJJ) --- Bulgaria --- Bourgas (BOJ) Varna (VAR) --- Croatia --- Pul...