Exhibit E

Case:17-03283-LTS Doc#:3961-6 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

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COMMONWEALTH OF PUERTO RICO

Financial Information and Operating Data Report

December 18, 2016

Case:17-03283-LTS Doc#:3961-6 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

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TABLE OF CONTENTS

INTRODUCTION .......................................................................................................................................................1

BASIC FACTS ABOUT THE COMMONWEALTH ..............................................................................................8

OVERVIEW OF THE COMMONWEALTH’S FISCAL CONDITION.............................................................12

RISK FACTORS .......................................................................................................................................................43

PUERTO RICO OVERSIGHT, MANAGEMENT AND ECONOMIC STABILITY ACT...............................73

COMMONWEALTH REVENUES AND EXPENDITURES ...............................................................................83

PUBLIC CORPORATIONS...................................................................................................................................117

COMMONWEALTH FINANCIAL REPORTING AND FINANCIAL RESULTS FOR FISCAL YEARS 

2010 THROUGH 2016 ............................................................................................................................................148

DEBT OF THE COMMONWEALTH, ITS PUBLIC CORPORATIONS AND MUNICIPALITIES...........172

RETIREMENT SYSTEMS AND OTHER POST-EMPLOYMENT BENEFITS.............................................209

THE ECONOMY ....................................................................................................................................................247

LITIGATION AND RELATED MATTERS ........................................................................................................283

FINANCIAL STATEMENTS ................................................................................................................................298

CONTINUING DISCLOSURE..............................................................................................................................298

INSURANCE MATTERS.......................................................................................................................................300

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PRIFA – AMSCA and Other GDB Loans

PRIFA issued bonds to fund the acquisition of certain facilities leased to the Mental 

Health and Anti-Addiction Services Administration (“AMSCA”). These bonds are payable from 

lease payments made by AMSCA, whose revenues are primarily General Fund appropriations. 

Except in the case of fiscal year 2017, annual payments on the AMSCA bonds have historically 

been included as appropriations in the Commonwealth’s General Fund budget. As of July 31, 

2016, approximately $36 million in AMSCA bonds were outstanding. 

In addition, PRIFA had, as of July 31, 2016, approximately $49 million of loans payable 

to GDB. The primary source on repayment on these PRIFA loans has traditionally been General 

Fund appropriations.

Other Central Government Indebtedness Payable by Commonwealth Appropriations

The Commonwealth, including the Treasury Department, has also borrowed from GDB 

and from private banks under lines of credit and through the issuance of notes purchased by 

GDB to finance ongoing operating and capital expenditures. 

As of July 31, 2016, the Commonwealth had approximately $3.531 billion in principal 

amount of loans and notes outstanding that are payable from Commonwealth appropriations. 

Approximately $3.429 billion of such borrowings are payable to GDB, $100 million are payable 

to the State Insurance Fund, and $2 million are payable to the Automobile Accident 

Compensation Administration.

Indebtedness Payable by Tax-Supported Public Corporations

Government Development Bank for Puerto Rico (“GDB”)

GDB historically provided financing to the Commonwealth, its public corporations and 

its municipalities. While certain of these loans were used to finance capital expenditures, in 

many cases in anticipation of the issuance of bonds and notes, GDB loans were also used to 

cover operational deficits of the Commonwealth and its instrumentalities. 

As funding during the past decade for such financings, GDB relied primarily on issuances

of senior unsecured notes (“GDB Notes”) and public sector deposits. As of July 31, 2016, GDB 

had approximately $3.766 billion principal amount of GDB Notes outstanding, $110 million of 

which are guaranteed by the good faith, credit and taxing power of the Commonwealth and held 

by the State Insurance Fund. Outstanding principal on GDB Notes reached its highest point 

during fiscal year 2012, when approximately $6.107 billion in GDB Notes were outstanding. 

GDB’s primary source of income is loan repayments from its public sector loan portfolio. 

GDB’s loan portfolio is primarily comprised of loans to the Commonwealth and its 

instrumentalities payable from Commonwealth appropriations or from tax revenues assigned to 

certain instrumentalities, such as HTA, who have pledged such tax revenues to GDB as source of 

repayment for its loans. As a result of the current financial condition of the Commonwealth and 

many of its instrumentalities, including HTA, the Commonwealth and these instrumentalities 

have been unable to repay their loans to GDB in accordance with their terms, which has resulted 

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in GDB lacking sufficient liquidity (or market access) to honor its debt service obligations. In 

light of GDB’s financial situation, an appropriation to cover GDB’s operating costs have been 

included in the Commonwealth’s fiscal year 2017 General Fund budget.

Pursuant to Executive Orders issued under the Moratorium Act, the Governor declared 

GDB to be in a state of emergency and limited withdrawals, payments and transfer requests to 

those that are reasonable and necessary to fund the provision of essential services by the 

Commonwealth. The Executive Orders also suspended payment of GDB debt obligations (other 

than certain interest obligations that are payment-in-kind), including its obligation to honor 

certain letters of credit issued by GDB for the benefit of holders of PRIFA Ports Bonds 

indebtedness, although GDB may request the Governor’s authorization to pay interest on its 

bonds to the extent its liquidity permits. GDB has been unable to fully meet its debt service 

obligations in full since May 1, 2016, and does not currently expect to make additional debt

service payments while the moratorium is in effect. 

University of Puerto Rico (“UPR”)

UPR’s primary source of revenue is budgetary appropriations from the Commonwealth’s

General Fund, which amount to approximately 70% of the UPR’s annual revenues.

The bonds issued by UPR under its trust indenture are general obligations of UPR and are 

secured by (i) tuition fees, (ii) student fees, (iii) rental and other charges for the right of use or 

occupancy of the University’s facilities, (iv) net bookstore receipts and (v) certain other revenue 

sources. Appropriations from the Commonwealth and grants from the U.S. Government are 

excluded; however, in the event that the pledged revenues are insufficient to pay the bonds, UPR 

may opt to provide monies from other funds available, including funds appropriated by the 

Commonwealth. UPR also covenants to set university fees so that the pledged revenues, together 

with any other funds, will be sufficient to pay principal and interest payments on the bonds. As 

of July 31, 2016, approximately $432 million in UPR revenue bonds were outstanding.

In addition to the bonds issued by UPR under its trust indenture, as of July 31, 2016, 

AFICA had $64 million outstanding principal of bonds issued to fund the construction of certain 

buildings and parking facilities commonly known as University Plaza that are leased to UPR. 

The proceeds of the bonds were loaned to Desarrollos Universitarios, a not-for-profit corporation 

that is a component unit of UPR, which built the facilities and leased them to UPR. The bonds 

are limited obligations of AFICA payable from loan repayments by Desarrollos Universitarios, 

which are in turn payable from lease payments under the UPR lease agreement. The lease 

payments are in turn secured by a subordinated lien on UPR revenues.

As of July 31, 2016, the UPR also had approximately $76 million in loans from GDB.

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