AAFAF

About Us

The Puerto Rico Fiscal Agency and Financial Advisory Authority

(AAFAF, its Spanish acronym) is an independent public

corporation and governmental instrumentality with separate

legal existence, fiscal and administrative autonomy. Its main
responsibility is to act as fiscal agent, financial advisor and reporting
agent of the Government of Puerto Rico, its agencies, instrumentalities, subdivisions, public corporations and municipalities.


AAFAF is also an important liaison that facilitates collaboration and communication between the Government of Puerto Rico and the Financial Oversight and Management Board for Puerto Rico established by the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”).


Read Act 2-2017 (AAFAF’s Enabling Act)


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    • Renegotiate or restructure certain unsustainable debts issued by the Government of Puerto Rico and its instrumentalities.

 

    • Coordinate the sustainable use of available resources and present a strategic and global vision of the capital needs of the Government of Puerto Rico and its instrumentalities.

 

    • Restructure and transform the Government of Puerto Rico to achieve balanced budgets and offer better services to the people of Puerto Rico.

 

    • Oversee compliance with the budgets and fiscal plans certified by the Financial Oversight and Management Board for Puerto Rico.
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    • Spearhead the development and implementation of Puerto Rico’s fiscal policy.
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    • Monitor and publish reports related to the fiscal and financial condition of the Government of Puerto Rico and its instrumentalities.

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“Puerto Rico is at a historical moment, a moment of profound transformation and financial recovery. As a sign of its deep commitment to the wellbeing of Puerto Rico, the Government is deploying its capabilities to quickly restore the economy of the island, focusing on its development and growth.

At AAFAF we are committed to Puerto Rico’s financial transformation through the development of good governance and fiscal policy processes.

Accordingly, we continue to steer public debt restructuring to sustainable levels. We have
efficiently implemented fiscal and structural reforms to bring Puerto Rico to fiscal balance, allowing us to regain the trust of the markets and generate new investment opportunities with a clear vision for evolving into a new economy.

Governor Ricardo Rosselló Nevares’ administration has taken significant steps to restore access to the markets and attract private capital, inserting Puerto Rico in the global financial map as one of the territories with a promising future for investments.

In addition, we have charted a realistic path to reestablish a competitive governance model for our citizens with greater and better access to
services and jobs. We meet these goals daily thanks to the work of a solid team. Through our commitment, transparency and responsibility, at AAFAF, we consolidate the present while
projecting the thriving future Puerto Rico deserves.”

Christan Sobrino Vega
Executive Director 
Puerto Rico Fiscal Agency and Financial Advisory
Authority

 

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What is the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”)?

AAFAF is a public corporation of the Government of Puerto Rico (“Government”) created by Act 2-2017 to act as fiscal agent, financial advisor and reporting agent of the Government, its agencies, instrumentalities, public corporations and municipalities. AAFAF has legal, fiscal and administrative autonomy from the Government and is governed by a Board of Directors composed of five (5) members, including the Executive Director of AAFAF.

What is the relationship between the Government Development Bank for Puerto Rico (“GDB”) and AAFAF?

GDB recently restructured its debts under Title VI of the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) and is currently in the process of winding down its operations in an orderly fashion. AAFAF assumed all fiscal agency, financial advisory, and reporting functions of the GDB. However, AAFAF is not the legal successor of the GDB, it is not a banking entity, and it has new and distinct functions pursuant to Act 2-2017.

What does AAFAF do as fiscal agent?

As fiscal agent, AAFAF manages the fiscal affairs of the Government and its instrumentalities. At a local level, AAFAF is the government entity responsible for approving bond issuances, promissory notes and any other evidence of indebtedness of the Government, its agencies and municipalities. 

What does AAFAF do as financial advisor?

As financial advisor, AAFAF works as financial consultant, supervises the finances and ensures the economic stability of the Government and its instrumentalities. AAFAF is the entity responsible for coordinating the sustainable use of Government resources and presenting a global vision of the capital needs of the Government and its instrumentalities. AAFAF also evaluates and advises government entities regarding the feasibility of potential financings. 

What does AAFAF do as reporting agent?

As reporting agent, AAFAF discloses the financial information of the Government and its public corporations. AAFAF also acts as dissemination agent for certain governmental issuers with respect to the disclosures required under applicable securities laws. AAFAF periodically publishes reports regarding the financial condition and liquidity of the Government and its public corporations.

What is PROMESA?

The Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) is a federal law enacted on June 30, 2016. PROMESA created a framework through which the Commonwealth can effectuate fiscal reforms and adjust its debts to allow it to adequately provide for its residents on a long-term basis. PROMESA established the Financial Oversight and Management Board for Puerto Rico (“Oversight Board”), whose role is to provide fiscal oversight through the development and approval of fiscal plans and budgets for the Government and any instrumentalities that become “covered territorial instrumentalities” by virtue of designation by the Oversight Board. Subject to Oversight Board approval, PROMESA also provides for access to two different federal debt adjustment schemes: (a) Title III, which provides an in-court process that incorporates many of the powers and provisions of the Bankruptcy Code and permits adjustment of a broad range of obligations; and (b) Title VI, which provides for a largely out-of-court process through which modifications to financial debt can be accepted by a supermajority of creditors that bind holdouts.

What is AAFAF’s role pursuant to Act 2-2017 and PROMESA?

Act 2-2017 establishes that AAFAF is the government entity in charge of collaborating, communicating and cooperating with the Oversight Board. AAFAF also collaborates with the Governor in the preparation and supervision of Fiscal Plans and Budgets pursuant to the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) and oversees compliance with the Fiscal Plans approved and certified by the Oversight Board. Furthermore, AAFAF is the only government entity authorized to renegotiate, restructure and reach at agreements with creditors regarding the debts of the Government and its instrumentalities.

What is AAFAF’s relationship with the Oversight Board?

AAFAF is the Government’s liaison with the Oversight Board. AAFAF is in charge of collaborating, communicating and cooperating with the Oversight Board on behalf of the Government and its instrumentalities. AAFAF is also authorized to oversee compliance with the Fiscal Plans approved and certified by the Oversight Board. Currently, the Executive Director of AAFAF is the Governor’s designee as ex officio member of the Oversight Board.

What should I know as an investor and/or citizen about AAFAF?

The purpose of AAFAF is to assist government entities in achieving fiscal responsibility and regaining access to the capital markets. 

Download FAQs document here