Puerto Rico Officials Discuss Commonwealth's Fiscal Health At Bloomberg Conference

Officials highlight positive trends in Commonwealth's collections and strengthened tax enforcement measures

SAN JUAN, Puerto Rico, Nov. 6, 2013 /PRNewswire-USNewswire/ -- Today, Melba Acosta Febo, Treasury Secretary and Chief Public Financial Officer, and David Chafey, Chairman of the Board of Directors of the Government Development Bank for Puerto Rico (GDB), participated on a panel regarding the Commonwealth's fiscal health and the steps that have been taken to stabilize its economy, during the prestigious Bloomberg State & Municipal Finance Conference in New York.

At the conference, participants examined the restructuring and recovery of different states and municipalities and how each case has affected the municipal bond market.

During the panel titled "Puerto Rico: What Markets Need to Know", Acosta Febo and Chafey outlined the difficult decisions the administration of Governor Alejandro Garcia Padilla has taken to advance the important fiscal and economic rebuilding program, most notably reforming the pension system. They also discussed other vital plans for further action, such as addressing the Commonwealth's energy needs.

"Since this Administration took office in January 2013, we have taken measures to stabilize our fiscal situation, promote economic growth, and safeguard and strengthen our credit in a swift, decisive and unprecedented manner," said Chafey.

Acosta Febo explained to moderator John McCorry, Bloomberg News Executive Editor, Americas, the positive results of the different measures that have been implemented in the first 10 months of 2013 and the measures that will be incorporated soon.

"Revenue figures for September and preliminary results for October are strong on a year-over-year basis, demonstrating that the actions we have taken to grow revenues and ensure compliance are working well. We are focused on continuing to make significant progress on our fiscal and economic development plans and on creating a platform for sustainable economic growth and job creation in Puerto Rico," she said.

Acosta Febo emphasized that the Treasury Department is carefully monitoring revenue behavior to ensure that collection efforts are enforced from all angles. Initiatives to strengthen the tax enforcement team include: recruiting 60 new auditors and other tax enforcement staff, hiring 30 additional enforcement staff members, and preparations for collecting the use tax on the ports beginning in December. Referrals to the Justice Department for criminal prosecution of merchants that retain the SUT collected from consumers instead of remitting the tax to the Treasury Department will continue to be pursued, and civil action will be brought against companies that executed payment plans with Treasury during the past tax amnesty but have failed to meet the terms of such payment plans.

The Treasury Department's enforcement team will also develop new audits incorporating the changes brought by Act 40, and will develop an aggressive media campaign against tax evasion, among other important measures.

The subject of Puerto Rico's economic situation was also discussed in the panel "Puerto Rico: Outcome for Markets", during which executives from Credit Analysis, Fundamental Credit Opportunities and Moody's discussed the different scenarios Puerto Rico's finances are going through.

Following is the link to Bloomberg Conference: http://www.bloomberglink.com/events/munis-2013/

SOURCE Government Development Bank for Puerto Rico (GDB)