Puerto Rico in Distress

ABI Analysis

Authorities announced Thursday they have suspended the operations of Puerto Rico-based Euro Pacific International Bank, which officials previously said was under suspicion of facilitating money laundering and offshore tax evasion, the Associated Press reported. The bank was founded by Peter Schiff, a U.S.

Officials in Puerto Rico announced another electric rate increase Wednesday, the seventh in a year amid continuing power outages and the U.S. territory’s economic crisis, the Associated Press reported. For a client that consumes 800 kilowatt hours, the new rate will be 33 cents per kwh, compared with the previous 29 cents. The average U.S.

McKinsey & Co. has been a top government consultant since 2016 in Puerto Rico, helping the U.S. territory’s financial overseers manage its spending. In that time, corporate clients of the consulting firm have won tens of billions of dollars of government business, new disclosures show, the Wall Street Journal reported.

Mutual funds are pouring back into Puerto Rico debt, a notable comeback for the U.S. commonwealth that’s exiting the biggest ever municipal bankruptcy after five years and that still struggles with an uncertain economy bled by population loss, Bloomberg News reported. Island officials are trying to make sure investors don’t leave.

Other Resources

The Financial Oversight and Management Board for Puerto Rico was created under the Puerto Rico Oversight, Management and Economic Stability Act of 2016. The Board consists of seven members appointed by the President of the United States and one ex officio member designated by the Governor of Puerto Rico. Access information on the Board, documents, videos of meetings, calendar of events and live webcasts by clicking here.