Financial Oversight and Management Board for Puerto Rico PUBLIC RELEASE For Immediate Release OVERSIGHT BOARD HOLDS THIRD MEETING IN PUERTO RICO Carrión: “More needs to be done to restore growth and opportunity” (Fajardo, PR - November 18, 2016) – The Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) created under the Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA” or the “Act”) today heard from representatives of the education, health and Third sectors, professional and trade associations, local and stateside economists and local bondholders who offered the Oversight Board their comments regarding the Government of Puerto Rico’s Fiscal Plan (the “Fiscal Plan”) presented by Governor Alejandro García Padilla on October 14, 2016. Presenters at the Oversight Board’s third meeting, held today in Fajardo, Puerto Rico, included Law and Public Administration student and former member of the University of Puerto Rico Governing Board and former President of the General Student Council, Christian Arvelo Forteza; Bonistas del Patio representative Jorge Irizarry; Puerto Rico Chamber of Commerce President-Elect Alicia Lamboy; Jubilee USA Executive Director Eric LeCompte; Puerto Rico Manufacturers Association President Rodrigo Masses; Certified Public Accountants Society Executive Director Edna Jiménez in representation of President-Elect José Orta; Puerto Rico Hospital Association Executive President Jaime Plá; Pharmaceutical Industry Association Government Affairs Committee Chairman Néstor Ortiz; Estudios Técnicos Chairman J. Joaquín Villamil and Anne Krueger & Associates economist Andrew Wolfe. “The Board is very pleased to have held this meeting in Puerto Rico and is very thankful for all the comments received in response to our Invitation to Comment on the Fiscal and Economic Growth Plan of the Government of Puerto Rico and greatly appreciates the testimony presented today at the meeting. The Board is in the process of evaluating the Fiscal Plan and expects to finish that evaluation by next January 31,” said Oversight Board Chairman José B. Carrión. www.oversightboard.pr.gov comments@oversightboard.pr.gov Most of the stakeholders who responded were in consensus on the shortcomings of the proposed Fiscal Plan. The majority believed that the Plan did not meet the requirements of PROMESA; needed a more balanced approach between structural reforms, fiscal consolidation and debt restructuring and required more structural reforms and better financial controls. During the meeting, the Oversight Board adopted key principles for its evaluation of the Fiscal Plan and a timetable for the Governor to submit revisions. The Oversight Board also received a presentation from Government of Puerto Rico consultants Conway MacKenzie on the present state of the Government’s cash flow position. The presentation showed that even without any bond payments there is a budgetary and fiscal cliff coming at the beginning of the year. “Puerto Rico faces a massive budget and cash cliff and significant reforms are needed even without bond payments. There are no quick fixes or near term promises of substantial, additional federal help. The consensus among stakeholders is consistent with the Board's assessment: more needs to be done to restore growth and opportunity. The Board is committed to work with the Government of Puerto Rico to restore opportunity for its people. Tough choices and hard work ahead can pave the way to a stronger Puerto Rico,” said Carrión. The Board also received a presentation from Puerto Rico Aqueduct and Sewer Authority officials who offered an overview of the public corporation’s financial situation. At the meeting, Carrión announced that the Board had received final recommendations from its selection committees regarding the selection of the strategic consultant and outside legal counsel, including local (Puerto Rico) legal counsel. Carrión confirmed that the Board is in the process of finalizing the engagement of the selected firms and will make a public announcement shortly. Both engagements were the subject of Requests for Proposals issued by the Board on October 20, 2016. Following its official meeting in the morning, the Oversight Board was scheduled to hold an afternoon meeting with a broad range of representatives from the local healthcare sector, including Ricardo Rivera Cardona, Executive Director of the Puerto Rico Health Insurance Administration (ASES); Angela Weyne Roig, Puerto Rico Insurance Commissioner; Terry Bischoff, Chairman of the Puerto Rico Healthcare Coalition; Jaime Plá Cortés, Executive Vice President of the Puerto Rico Hospital Association; Roberto Pando, President of the Health Committee of the Puerto Rico Chamber of Commerce; Nestor Ortiz, Chairman of the Government Affairs Committee of the Pharmaceutical Industry Association; Iván Román, www.oversightboard.pr.gov comments@oversightboard.pr.gov Strategic Advisor to the Board of Directors of the Pharmaceutical Industry Association; Roberto Pérez Nieves, President of the Puerto Rico Physicians and Surgeons Association; Joaquín Rodríguez, Chairman of the Board of HIMA San Pablo Hospitals; Anitza Urquía, Executive Director of Centro Teras; Dr. José E. Laborde, President of JEL Healthcare Consulting; and Orlando González, President of MMM. The fact finding meeting gave the Board an opportunity to listen first hand to the critical concerns of the local healthcare industry. “Healthcare is one of the most critical items on the Board’s agenda, so we wanted to take the opportunity of this meeting in Puerto Rico to engage with these representatives and learn first-hand about the challenges this sector is facing,” added Carrión. Likewise, Board members Andrew G. Biggs and Ana J. Matosantos met yesterday with officials from the Government Employee Retirement System and the Teachers Retirement System, as well as the executive director of the University of Puerto Rico’s Retirement System. Board members were also scheduled to meet Friday afternoon with Puerto Rico Governor-Elect Ricardo Rosselló and with Resident Commissioner-Elect, Jenniffer González, on Saturday. The Board meeting was made available for public viewing via live webcast streaming, with English and Spanish audio options. The recorded meeting will be posted on the Board’s website www.oversightboard.pr.gov as soon as possible after the meeting. ### Contacts: José Luis Cedeño 787-717-2429 jcedeno@forculuspr.com info@forculuspr.com Board’s Contact Information: E-mail: comments@oversightboard.pr.gov Website: www.oversightboard.pr.gov www.oversightboard.pr.gov comments@oversightboard.pr.gov