Orrick - Finance 20/20 (JD Supra Puerto Rico)

On Wednesday, January 13, 2016, the U.S. Supreme Court will hear arguments in the appeal styled under the caption Commonwealth of Puerto Rico v. Sanchez Valle, No. 15-108. In this case, the Supreme Court is asked to determine whether Puerto Rico and the United States are separate sovereigns for purposes of the Double Jeopardy Clause contained in the Fifth Amendment of the U.S. Constitution.

Supreme Court to Determine Constitutionality of DERA By order dated December 4, 2015, the US Supreme Court has agreed to consider the appeal by the Commonwealth and the Government Development Bank regarding the constitutionality of the Commonwealth’s Debt Enforcement & Recovery Act (DERA).

Following up on one of the Administration’s legislative proposals to address Puerto Rico’s fiscal crisis, on October 22, 2015, Senator Robert Menendez introduced a bill “The Earned Income Tax Credit and Child Tax Credit Equity for Puerto Rico Act of 2015” (S. 2203), to make residents of Puerto Rico eligible for the earned income tax credit.

The Commonwealth of Puerto Rico continues its efforts to maintain fiscal and financial stability. This week, we expect the Commonwealth to move forward with an approximately US$3 billion General Obligation bond financing. This offering is expected to provide the Commonwealth with sufficient liquidity to enable the Commonwealth to analyze its options in a more methodical fashion. The Commonwealth...