News about the economy

PR GDP is 103.1 billion according to Siri.

Population of coneticut is about the same as PR and their GDP is about 256 billion or so

PR has been sending tax refunds, however according to an article there is the possibility that they may end up stoping the refunds because of the bankruptcy.

If you were waiting on a PR tax refund, it may be a while!!!!!!

Bond holders may ask the court to stop their distribution, since likely it is not considered a critical service, the more money stagnated, the more chances that it can be used to pay the bond holders.

So there is that possibility.

As I understand the government has not made super clear what critical services are. While you and me may say safety, education, medical and others, the court will decide.

Who is demanding http://www.elnuevodia.com/english/engli … g-2318032/

New York judge assigned to the title III bankruptcy case.
http://rec-end.gfrcdn.net/docs/editor/D … #243;n.pdf

Here is the assignment made by the Supreme Court.

Likely court dates will be set within the next 2 weeks, her current case load is probably being shifted.

Some of the top issues:
Who has first dibs on the money? - Cofina bond holders or Constitutional Bond Holders.
What is the actual Financial situation of Puerto Rico
And last but not least, who is going to try first to bribe the judge. 

ReyP wrote:

And last but not least, who is going to try first to bribe the judge. 

There may be an audit process before start assigning any payments. This will be a long and expensive process. At the end, irregardless of the outcome, the people of the island will be the ones paying the consequences.

Thank you Rey, I think your numbers are a bit closer to the truth the what is published. GNP published is three times that.

GNP published shows no issue there. Yet when you take into account of tax relief of going there.. Well a whole new issue develops. If they don't stay, you lose..

Puerto Rico has a unique situation by being a Commonwealth of the US. Not a state (which I do think would be a mistake, MHO) and not an Independent Country (which I do believe they'd be better off, again MHO).

I would love to find a site that actually shows Puerto Rico balance sheet.

Anyone out there now of one, please link it.

The people are always the ones that suffer. No Bankruptcy, of any level, protects the 'little people', as we are of such.

The only item that helps is a state can not fail. Issue is Puerto Rico is not a state. I do not see it going to a point of Puerto Rico failing... What scares me most is whom is going to 'oversee'!

Scares me that they may start selling parts of the beaches and making them private and other natural resources that are currently protected and allowing major companies to come in and contaminate the place even more than what it is to make money to get out of the bind.

If you look at la partiera, there floating houses on the water that are not supposed to be there but nobody is enforcing the laws, they also are enforcing their property when they are really in public lands/beach front.

I think this is a good example of the government wasting money and inaction in PR. An agency / board that simply does nothing to take care of around 1,200 beaches in PR.
Check it out: http://www.elnuevodia.com/english/engli … /#cxrecs_s

Hope this article helps to some degree.

Quite a read..

ReyP wrote:

Scares me that they may start selling parts of the beaches and making them private and other natural resources that are currently protected and allowing major companies to come in and contaminate the place even more than what it is to make money to get out of the bind.

If you look at la partiera, there floating houses on the water that are not supposed to be there but nobody is enforcing the laws, they also are enforcing their property when they are really in public lands/beach front.

Rey,

The floating houses in La Parguera are under 100yr contract with the corp of engineers. They cannot build any more and the standing ones are been regulated by the federal government. No bathrooms are allowed on the ones in the mangle trees, they have a container tank that have to have standing contract for regular empty. The ones in the costal are are tied to the city sewer system and are regulated. Most folks that have them have been there for years. To purchase an existing one, you can only purchase the structure, not the rights so you take a risk. And they're not cheap, least expensive one will cost you over $100K. A few owners will rent them out for the weekend.
The La Parguera area is not what it used to be 10yrs ago. The business owners are very involve on the area development and keeping the tourism coming. They have taken upon themselves to upgrade the beach islands to make sure they are presentable to the tourist. One of the best beaches in PR is there, Playita Rosada, it had won several awards internationally.

Next time you're in the island come to my side of town and I can take you for a tour!!! Bring the rum!!!

adlin20, That's what it's going to take my friend! "The business owners are very involve on the area development and keeping the tourism coming"
It's when Grassroots folks or the Business' in the area start taking control, things happen.

I'm involved with several here in NH.
Heh, Our newly elected Senator showed up at the Wildlife Banquet and had her sweet little ass handed to her by the membership. "I an so proud of what you folks are doing!" She claimed.. Caught her aside, as did several others, and told her straight up.. "If your Party had left Fish & Game alone (no expense to the state) we never would have formed this group."

I do hope enough folks in PR stand up and do what is required.

I can tell you it is working for them. We went to the pineapple festival at La Parguera today, it was pack! You could see every business was full with customers. The marina area was booming with boats. Based on the way the business were busy, you would not think that the island had so many issues going on.

Glad to hear it.  That's one of the reasons we looked into Parguera -- it was clear that there was an investment being made into the town and it's economy.

CRIM is under fire, there is a bill to remove some of the functions of CRIM and give it to each of the towns / municipalities. Under the Bill CRIM will basically hold the record of properties. This is because they have 2.8 billion in property taxes that they have not collected and the issue has been going on for many years.

If the bill passes, each town or multiple towns can get together to appraise property and bill / collect the taxes. Many Mayors are applauding the initiative since the Central Budget cut 350 millions that the central government used to give to the towns.

If they (municipalities) are effective at collecting and appraisal they will be swimming in money, if they don't they will starve.

One DANGER: I have not seen anything about rates, but each town may or may not end up with the ability to set their own rate, so likely expensive homes may end up paying a higher rate. This would be like in the states where each town or county has its own rates making it cheaper or more expensive to live in one town or another.

I bet this is not an advancement you guys were looking for, LOL.

It is not signed yet, it is just a bill but it looks like it has support.
Rey

scary days ahead, a friend of mine told me; he's lived here 28yrs and is a corporate financial adviser. Things will get worse, before they get better, we just need to keep on keeping on.

According to an article I just read, PR public employees make up 25% of all employees in the island or 1 in 4, this is after reducing the goverment by 7,000 earlier this year. Connecticut which has similar population employs about 14 percent and the average for all the states is 17 percent.

So once the bankruptcy trial starts, I am sure the bond holders will be pushing the issue and a lot more people in government will be looking for a job or going to the states. Likely this means more homes in the market.

Possible 100,000 public employees may get layoff. There are about 227,000 currently.

Yes the next 2-3 years are going to be much worse, specially for the natives. After that I expect thing will start a period of stabilization at the low end. Some low level stabilization will occur after all the cuts are done with and people will have no choice but to enter the grey market or leave. I see more personal bankruptcies and reposed homes shortly.

While the government has tried not to layoff people, it is a fact that they will not be able to avoid and the numbers will be large.

It is funny that the illegals in PR most of them from the Dominican Republic, are starting to go home since jobs in PR are getting harder to find even in the grey market. Also scared of inmigration but to a lesser degree.

The San Juan Marriott Resort and casino in Condado was purchased in the recent days by a Chinese group of investors for $187 million. Seems the Chinese are serious about investing in the island.

Earlier I also posted about a park with a Chinese motive that they plan to invest 200 million on. It has been several months in the planning, however there is no word yet as to what site it will be in. One of the requirements was a regional airport close by.

Yes, the Dominican economy has been very good, the last few years; I think they're at about 5+% GDP, so when the "illegals" here hear about that, they go back home, where they are better off... I have heard that many PR natives are moving over to DR as well.

Here is the piece about the CRIM. http://www.elnuevodia.com/english/engli … g-2319541/

mac00677 wrote:

Yes, the Dominican economy has been very good, the last few years; I think they're at about 5+% GDP, so when the "illegals" here hear about that, they go back home, where they are better off... I have heard that many PR natives are moving over to DR as well.

Very true but as I understand salaries are a lot lower in DR, I have also heard some people from PR going to DR for jobs, but with the salaries there it does not make much sense to me.

Looks like first bankruptcy hearing will be May 17
http://flip.it/HVunyb

Perhaps this could be a new post but I have an idea about the economy....Puerto Rico becomes independent and a Greater Antilles Union is formed where Cuba, Hispaniola, Jamaica. Puerto Rico become like the European union. Free trade, travel, work, etc. Tourism could be developed with ferry services between islands, solar,wind, etc, energy sources and affordable electric cars. Tariffs on big chain stores, fast food, etc. Cuba has good doctors and Puerto Rico has hospitals. Everyone has beautiful beaches and their unique culture that would not be compromised. Is this just one crazy idea?

Mrkpytn,
Great idea, but I would expand it to all Latin America.

Mrkpytn wrote:

Is this just one crazy idea?

The idea ain't bad but it's never going to happen.
The PIP (indpendence party) gets around 5% of the votes in the elections. There's  not suddenly magically going to be a majority for independence.
Then, assuming it would happen, just think of how many people would pack and leave for the the mainland before "independence day". Some idealists and a bunch of poor people who can't move would stay behind on the island....

Count me in as one of the idealists, I do not think the US wants to make PR a state, if correct, that leaves two choices, stay a colony or become independent. Maybe there is only one real choice since colonial is illegal according to the UN. Who knows what is going to happen in the future.

I'm not a gambling man but if I were I'd put money on the present colonial status. The US doesn't care if the UN thinks it's illegal, statehood is too far fetched and independence will never happen unless the US kicks PR out against its will (and will get at least 2 million more Puerto Ricans in the lower 48).

That's why it would be good if the politicians in San Juan would  give up on making the status of PR the most important issue and start doing something about the economy and making PR a better place. Not that I am hopeful that this is ever going to happen either.

They are too busy playing political games to do what they need to do for the economy. It is going to get ugly very soon.

I'm afraid you're right again...

As to colonial, it is like meeting your birth father for the first time when you need something. He will likely help you and walk away, a year or two later you need something else and he may give it or not. Either way you are two strangers with a connection but not much of a relationship. He has its own family and is very uncomfortable around you and may have some guild feelings but that is about it.

That's how I see the PR, US relationship under a colony.

Looks like the governor will no longer wait for the Federal Justice department to give the go ahead and or release the 2.5 million dollars for the Plebiscite. The governor looks like will pay for the whole thing at a tune of 5.3 million and will still hold the Plebiscite on June 11 as originally planned.

This is the same one that all the other political parties are ignoring and not participating in.

I guess this ensures that statehood will win since only the party (PNP) that wants statehood is participating and its members. This is a weird vote.

As to congress and the justice department, your guess is as good as mine. They could acknowledge the Plebiscite or completely ignore it since only 1 party participated and there was no accounting for the votes since the other parties would not monitor/inspect the vote, would not participate in the counting, would not assist and told their members to stay home.

Regardless of acceptance as valid or not, I and many others do not think Washington is going to accept to change the constitution to allow PR as a state, at least not for a decade or three.

Note: Since the government is controlled by the PNP party they can pass laws unopposed and this is one of many of these situations. Laws are being passed without allowing discussions and no public views, this must be a new form of "democracy" I am not familiar with.
http://www.elnuevodia.com/english/engli … t-2319891/

Welcome to Puerto Rico

https://www.forbes.com/sites/econostats … d41e8956f9

Forbes article.  No new news, really just confirms what we already know.

I say approach Marc Antony, Lin-Manuel Miranda, Jay-Lo, Pit Bull and a few other "Puerto Ricans" with money, clout and passion for their homeland to work with building contractors, green energy companies, agriculturalisits, etc. to fund urban renewal/revitalization projects, expand farming and work to update schools. etc.

Puerto Rico has everything: culture, history, natural wonders, modern conveniences, great music, AMAZING food, gorgeous beaches, friendly people and more. It needs help in getting past its slump. but It has the potential to be the jewel and  "go-to" place in the Caribbean.

independence at this point would be a complete failure.

Hi everyone,

Some unwelcomed posts have been removed from this thread.

All the best,
Bhavna

AEE and other agencies of the government are loosing some of their more seasoned workers which are choosing to retire.

For those waiting on PR tax reforms, they are coming along better than last year. So far they have send out about 90 millions in refunds.

Just read a news article that unemployment for young people between the ages of 16-24 is around 41%. This is mostly because of the economy and the lack of opportunity. a lot of University graduates are leaving the island because they can not find jobs, specially in the area of their study so they are moving to the states causing a brain drain.