GDB receivership not in the cards, for now

By Jennice Fuentes / Fuentes Strategies

Banco Gubernamental de Fomento

Foto: RadioIsla1320.com

The Government Development Bank’s (GDB) precarious fiscal state has prompted several analysts to call for it to be put in receivership, and for eventual liquidation. Candidate for Governor of the Popular Democratic Party (PDP) David Bernier publicly called on the Governor to take that step. The García Padilla Administration is reluctant to put the GDB in receivership, and is instead considering a deferral of the decision to the Fiscal Control Board. In terms of process, any receivership would first have to be recommended by the GDB board or the Secretary of the Treasury. Currently, the 7-member board has 5 vacant seats; only outgoing GDB President Melba Acosta and Economic Development and Commerce Secretary Alberto Bacó are actively serving. The Governor is expected to make appointments to the two private sector slots on the board soon.

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