GDB Chairman And Treasury Secretary Provide Joint Comment On Recent Statements From Ratings Agencies

SAN JUAN, Puerto Rico, July 11, 2014 /PRNewswire-USNewswire/ -- Today, Chairman of the Board of Directors of the Government Development Bank for Puerto Rico, David H. Chafey, Jr., and Treasury Secretary Melba Acosta Febo provided the following comments on recent actions by Standard & Poor's as a result of the enactment of the Puerto Rico Public Corporation Debt Enforcement and Recovery Act ("Recovery Act"): 

"S&P's suggestion that the recent passage of the Recovery Act signals a potential shift in the commonwealth's historically strong willingness to continue to meet its obligations to bondholders is simply incorrect.  The Recovery Act specifically excludes the Commonwealth, all of its municipalities, the GDB and COFINA and in no way alters our commitments to honor our GO, COFINA and other related credits. The explicit aim of the Recovery Act is to protect and strengthen the GDB, General Fund, and Puerto Rico's GO credit by giving public corporations the opportunity to become self-sustaining businesses that no longer require support from the General Fund or the GDB.    

"This administration has implemented critical and decisive measures to stabilize Puerto Rico's fiscal situation, promote economic growth, and safeguard and reinforce Puerto Rico's credit.  This includes the first balanced budget in 22 years, a comprehensive reform of the Employees Retirement System, the passing of the Fiscal Sustainability Act, and important measures to strengthen the public corporations of Puerto Rico, including measures to materially reduce their operating costs.  We will continue to proceed with determination and focus to successfully guide Puerto Rico on its path to fiscal health and stability."

SOURCE Government Development Bank for Puerto Rico (GDB)