Puerto Rico Economic Pulse ©
By H. Calero Consulting Group Puerto Rico Economic Pulse© • • • • • • • • • • • 0 Comments

Oct 2016 – One More Time: Puerto Rico’s Agenda

Election 2016 – Analysis of Economic Platforms
On November 8th, 2016, Puerto Ricans will face a stark choice between six governor candidacies, consisting of 4 political parties and 2 independent candidates. According to recent polls, independent candidates are attracting 22% of voters. Still, Ricardo Rossello from the NPP and David Bernier from the PDP are leading the polls to be the next Governor of PR. However, with the recent approval of a US Congress mandated Fiscal Control Board for PR, most people consider the elected governor and the legislature will have limited powers and areas of influence. Under these circumstances, the next four years will be tough for the new government and the people of PR. Economic issues include recession, outmigration, debt payments, retirement and health time bombs, and a harsh relation with the Fiscal Control Board. Voters in PR will have to analyze carefully the various platforms of these candidates and determine if some of these measures are economically unfeasible, not fiscally prudent, unclear; or depict lack of organization and cohesion, among other flaws. Can you judge who might be the better candidate for PR?

Puerto Rico Economic Pulse ©
By H. Calero Consulting Group Puerto Rico Economic Pulse© • • • • • • • • • • 0 Comments

Sep 2016: Urgency of Now for Credit Cooperatives

An important component of Puerto Rico’s Financial Sector

Believers of the credit-union movement talk of a “social mission”: to serve communities. As of March 2016, credit unions in the Island had 976,550 members with $8.7 billion in total assets. Earnings are returned to members in the form of better interest rates and dividends. Traditionally, credit unions have offered higher rates than banks to savers and lower rates to borrowers. During this financial and current economic crisis in PR, most credit unions have been more resilient than banks. They have been able to compete with banks and small loan companies who complain loudly about credit unions’ exemption from local income tax. Though credit unions may pay no taxes, neither have they needed taxpayers’ money for bailouts, until now. Many credit unions, which purchased PR bonds (currently rated as junk) are facing tough challenges with their capital requirements. Its regulator COSSEC has been considering a “bailout” type of proposal for these credit unions. Will it be enough without endangering their regulartor COSSEC? Find out in this Pulse.