Federal treasury extends credit line to provide emergency loans

Governor Ricardo Rosselló , informed today that an agreement was signed with the federal government so that the island has access to emergency loans (CDL, for its acronym in English) worth up to $ 2.253 million to mitigate the effects of hurricanes.

Rosselló made the remarks in a statement after meeting with federal treasury secretary Steve Mnuchin .
The agreement provides a commitment by the federal government to extend a line of credit to the Executive to provide loans up to a maximum amount of $ 2,253 million through the Federal Emergency Management Agency (FEMA).

That amount is equivalent to the estimated revenue losses of the Government of Puerto Rico during the 365 days following the onslaught of Hurricane Maria . 

The use of these funds would be used to attend to any future liquidity emergency and the commitment will be valid until March 31, 2020.

” Thanks to Secretary Mnuchin for working hand in hand with his work team and our Administration to facilitate that Puerto Rico have access to these loans if necessary after the fiscal and social impact caused by Hurricane Maria to our island, thanks to the Treasury Department of the United States for trusting Puerto Rico and helping us in this recovery process, “he said. leader.

The first executive explained that in order to have access to this type of loans it is necessary that the funds deposited in the central account of the Department of the Treasury (TSA) fall of $ 1,100 million .

It was reported that the loan agreement is subject to ratification by the Legislative Assembly, the Fiscal Oversight Board (JSF) and the Title III Tribunal once it becomes necessary to access the funds. 

The document was signed on July 11, 2018 and delivered to the governor by the federal Treasury.

Rosselló met in several working sessions with the Federal Treasury Secretary, the Executive Director of the Administration of Federal Affairs of Puerto Rico in Washington, Carlos Mercader, and the representative before the JSF, Christian Sobrino.

Also, the governor thanked the work of Gerardo Portela, executive director of the Financial Advisory Authority and Tax Agency (AAFAF) and his team that led the conversations of this agreement.

It is expected that work sessions will continue today with the Aqueduct and Sewer Authority (AAA) and the Public Corporation for Supervision and Insurance of Cooperatives of Puerto Rico.

This visit by Mnuchin is part of the commitment made with Governor Rosselló Nevares so that the Federal Treasury guarantees technical advice in the recovery process to the local government and quarterly visits to ensure the joint work agenda.