View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

3/19/2020

Readout of Interagency Meeting with Puerto Rico’s Financial Oversight and Management Board | U.S. Department of the Treasury

Readout of Interagency Meeting with Puerto Rico’s Financial
Oversight and Management Board
February 28, 2018

Washington – Yesterday, o icials from the Department of the Treasury, the O ice of
Management and Budget, National Economic Council, the Federal Emergency Management
Agency (FEMA), the Department of Commerce, the Department of Energy, the Department of
Housing and Urban Development, and the Department of Justice met with the Puerto Rico
Financial Oversight and Management Board (FOMB) and members of its senior sta for an
information sharing session.
FEMA and Treasury o icials discussed the terms and conditions under which the Federal
Government will o er Community Disaster Loans (CDLs) to the Commonwealth of Puerto Rico,
including important steps that will be taken to protect federal taxpayer investments while
ensuring funding is available quickly when needed. Treasury and FEMA are putting in place loan
documentation for the Commonwealth to access funding quickly in the event its cash balance
declines below $800 million. CDL financing will be structured through direct lending to the
Commonwealth, which could then on-lend to its public corporations, including the Puerto Rico
Electric Power Authority (PREPA).
FEMA is also working closely with the Commonwealth and Puerto Rico’s municipalities to fund
their own, municipal-level CDLs. FEMA is aggressively reviewing applications and expects to
begin funding loans of up to $5 million per municipality in the near future.
The FOMB reviewed fiscal plans to be completed under the Puerto Rico Oversight, Management,

and Economic Stability Act (PROMESA), the status of restructuring Puerto Rico’s debts and
pension obligations, and Puerto Rico’s plans to privatize PREPA.
####

https://home.treasury.gov/news/press-releases/sm0299

1/1


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102