The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF, by its Spanish acronym) and Chief Financial Officer Omar J. Marrero announced that the government of Puerto Rico has received $49 million in interest fiscal year-to-date.
The weekly report on the Treasury Single Account (TSA) revealed that this account—which maintains a balance of approximately $8 billion—accrued close to $49 million in from July 1 to November 22, 2019.
Marrero indicated that said earnings were due to several bank movements the Puerto Rico Treasury Department, with AAFAF’s support, made aimed at generating better interest yields for the TSA.
TSA funds that are not reserved for operating expenses and budgetary purposes are transferred to interest-bearing accounts in different banks authorized to do business in Puerto Rico by the Office of the Commissioner of Financial Institutions.
Puerto Rico Treasury Secretary Francisco Parés Alicea explained that the transfers made in October are part of a recently established program to maximize interest generated through the monthly redistribution of TSA unreserved balances.
“This redistribution is projected to produce approximately $124 million in accrued interest per year, which reflect a 39 per cent increase compared to the interest generated during the previous fiscal year,” Parés Alicea stated.
Governor Wanda Vázquez Garced commended the officers for reinforcing the accountability reports, which the administration stated will result in more transparency on government administration and benefits for the people of Puerto Rico.
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