Fiscal Board authorizes an agreement to pay off the Port Authority’s $601 million debt

fiscal oversight board (jsf) A settlement has been authorized that will resolve a $601 million claim against the Port Authority for debt with the Debt Recovery Authority (DRA) as the successor entity Government Development Bank (BGF).

These loans relate to financing that GDB gave the port in 2008, 2011 and 2014 as a guarantee on certain port assets, including Piers 11 to 14 at the cruise terminal in San Juan Bay.

Financial Advisory Authority and Fiscal Agency (Aaf) indicated through written statements that It was important to reach an agreement to pave the way for the development of a public-private partnership (PPP) on the cruise terminal. That includes repairing and expanding San Juan’s nine docks to receive larger ships carrying more passengers.

As part of the agreement which has the support of the Board, The $601 million loan claimed by DRA would be exchanged for a lump sum payment of $320 million, “of which up to $40 million may be repaid in the form of investment securities at DRA’s option.”, resulting in a discount of approximately 47%. The proposed deal is expected to close by January 31, 2024.

new day He requested a response from the director of the Financial Advisory Authority and Fiscal Agency (Afaf), Omar Marrero, as well as the director of ports, Joel Pizza Batiz, but there has been no response at the moment.

“The port agreement recently approved by the Oversight Board is the result of extensive negotiations and will facilitate the critically important P3, Urban Bay and Mega Yacht Marina project. The cruise industry has always been an important component of the island’s economy, but at this time we cannot compete on a larger scale with other jurisdictions that are changing to attract more and larger ships with better port facilities. The proposed conciliation agreement with the DRA and the execution of the project (at the dock) will meet the port infrastructure and modernization needs and make Puerto Rico a premier cruise destination,” said Executive Director Omar J. Marrero said. From uff. In a press release.

“This agreement represents an important achievement for AFAF and Puerto Rico towards improving Puerto’s financial condition and continuing the path of fiscal responsibility for the benefit of the people of Puerto Rico. “This agreement is testament to our focus on finding responsible solutions while keeping the well-being of all stakeholders as our top priority,” Marrero said.

The project in the ports – which according to Marrero will be taken forward with this agreement – ​​seeks to repair docks and expand their capacity for cruise ships.

As detailed in a press release, the abolition of obligations for ports facilitates the entry of the private sector into the development to create areas of entertainment, culture, sports and gastronomy, as well as the renovation of Bahía Urbana and A new marina is also built. megayacht On Piers 9 and 10, operated by Safe Harbor Marina,

He indicated, “The settlement of the obligations will eliminate almost all of Puerto’s long-term debt, allowing Puerto Rico to focus on its main objective of developing and promoting Puerto Rico as a transportation hub with world-class air and maritime services.” Will be allowed to concentrate. Official communication.