Report Shows Puerto Rico GDB's Exposure to Highways/Transportation Authority

The Government Development Bank of Puerto Rico has posted its auditor's report on fiscal 2013 showing the GDB's exposure to the Puerto Rico Highways and Transportation Authority.

The authority owed $2.05 billion to the bank, more than any other public corporation or agency, as of June 30, 2013. The second biggest debtor was the commonwealth's Treasury Department, which owed $1.59 billion on this date. All the other debtors owed small fractions of what each of these two entities owed.

In April 2013 the GDB's president at the time, Javier Ferrer, said the bank was in a "fragile" position. Ferrer pointed to his concerns about the ability of the HTA to repay loans to the GDB.

In response Puerto Rico's government approved a variety of recurring sources of revenue for HTA.

The audit, conducted by KPMG, found that the GDB's assets declined to $14.33 billion in June 30, 2013 from $15.78 billion in June 30, 2012. Liabilities also declined $11.95 billion in June 30, 2013 from $13.28 billion.

This meant that the bank's net position declined to $2.38 billion in June 30, 2013 from $2.5 billion in June 30, 2012. The June 30, 2013 net position figure was 16.6% of assets.

The operating income of the bank's operating fund decreased to $179 million in fiscal 2013 from $285 million in fiscal 2012.

In March 2014 the commonwealth sold a $3.5 billion bond. Among other things, the bond opened the way for the commonwealth and the public building authority to repay the bank for $1.9 billion in loans.

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Transportation industry Puerto Rico
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