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Debt Recovery Act has its Day in Top Court
Obama Trip to Cuba Sets Stage for Further Opening
Financial Control Board Still Up in the Air
If at First You Don’t Succeed, Try, Try Again
Status Issue Remains at Forefront Page 6
Sticking Points Remain Page 7
Yet to be Scheduled for Markup Page 8
New Tax Reform Bills Filed in House Page 24
COVER STORY
TOP STORY
Jittery Creditors Leery of Debt Moratorium Talk Measure Could Thwart Prepa, Prasa Deals Creditor groups angling to recoup their investment in the face of Puerto Rico’s volatile debt crisis are facing a deeper crisis of confidence as talk of legislation to declare a debt moratorium continues to resound among lawmakers and officials tied to the administration of Gov. Alejandro García Padilla. And patience is wearing thin
“All the talk about legislation to facilitate a debt moratorium makes investors jittery,” said one lobbyist with ties to two creditor groups who chose to remain nameless. As previously reported by Caribbean Business, the government could be pressed to enact debt-moratorium legislation, as the clock
among creditor groups that will soon receive a revised debtrestructuring offer from the commonwealth government. While La Fortaleza continues to say that debt moratorium remains an option, it has yet to call on the Legislature to enact a moratorium law. At least two sources have told Caribbean Business that the administration is seriously evaluating whether to pull the trigger on such a measure.
continues to tick on Congress to act timely on Puerto Rico’s fiscal crisis—if it decides to do so. With the support of the U.S. Treasury, the García Padilla administration is seeking broad debt-restructuring tools, but a majority of Republicans on Capitol Hill have yet to come onboard with the idea, and instead are calling for strong fiscal oversight.
Puerto Rico’s Aging Population Another Lost Decade Report The idea of a traditional retirement after age 65 is a notion that is fading as rapidly as the legendary gunslinger Shane rode off into the sunset. Back in 2008, a fifth (20%) of Puerto Rico’s residents age 40 and older expected to retire at any age between 68 and 80. And even as early as 2007, the U.S. Bureau of Labor Statistics (BLS) estimated two major shifts would occur in workforce demographics that would
lead American employers to face “unique human resources challenges”—the aging of the workforce and a diminishing number of young workers. Almost 10 years later, that estimation has become a harsh reality for Puerto Rico with a potential for even harsher consequences for the local economy. “The law in Puerto Rico states that a senior citizen is anyone who is 60 years or older. But even though this age is the
judicial cutline for what is considered the second half of our lives, as part of the senior citizens’ group, distinctions must be made [within this group],” said gerontologist Mildred Rivera. In 2010, the U.S. Census Bureau reported 20.4% of Puerto Rico’s population was 60 years of age or older, and 14.5% was 65 years or older. BY JUAN A. HERNÁNDEZ pages 14-18
BY philipe schoene roura & LUIS J. VALENTÍN continues on page 4