The Financial Oversight and Management Board for Puerto Rico announced recently it has approved a $185-million, temporary liquidity facility to aid the 78 municipalities of Puerto Rico compensate the "expected receipt of property tax revenue" because of the COVID-19 crisis.

The said facility, according to an online business news site, would be made by what's called in Spanish as CRIM or the "Commonwealth of Puerto Rico to the Municipal Revenue Collection Center, which pays remittances every month to the municipalities according to the property tax collection revenues.

Essentially, the said credit line would be available until July 31, 2020, and according to the tax collections, repayment is expected to be completed by end-November this year.

Tax Filing Extended

CRIM has also allowed the extension of tax filing due date, specifically the filing of personal property tax returns for the taxpayers to have cash flow relief due to the COVID-19 crisis according to a report.

In addition, the facility's liquidity will make it probable for CRIM to advance the regular monthly remittances to the municipalities from May to July this year, feasible.

Essentially, with the said facility, the Oversight Board, as well as the Puerto Rican government guarantee that the municipalities can continue to offer their essential services to the Puerto Ricans despite the emergency COVID-19 has brought.

The Board, according to its Executive Director, Natalie Jaresko, understands that since March this year, tax collections have dropped considerably as an outcome of gauges taken during the public health crisis.

Jaresko added they all know how vital municipalities are in Puerto Rico and the Board stays committed to helping find financially responsible ways to surpass the struggles municipalities are currently facing at present according to a report.

Moreover, the Oversight Board provided the draft of the agreement for liquidity facility, the legislative text and authorization to the Fiscal Agency and Financial Advisory Authority, and Puerto Rico Gov. Wanda Vazquez.

Meanwhile, the resolution that authorizes the use of the funds of the Commonwealth, according to Jaresko, needs the Puerto Rico Legislature's Approval and thus the Oversight Board is hoping that the facility will obtain its approval the soonest possible time to make it to the May 15 payroll.

Incidentally, a report from CBS News on May 12 said, Puerto Rico, is gradually rolling out plans to restart the economy two months after strict stay-at-home and lockdown orders. 

Earlier-Announced COVID-19 Package

During the latter part of March, Puerto Rico announced a financial package amounting to $787 million to help improve the economic effect of COVID-19 in this US territory.

This said amount according to reports was bigger than any declared amount so far, by the US states. Relatively, Gov. Vazquez said, procedures would include a 90-day moratorium for commercial and personal loans, as well as other mortgages that would not impact people's credit standing.

Also, the governor announced ample bonuses that would include the ones amounting to between $2,000 and $4,000 for police, nurses, as well as the other emergency and health care workers.

Lastly, as part of this package earlier announced by Vazquez, she said that the territory's over 134,000 employees of the public sector would still be paid during the pandemic and that the government would be offering a $1,500 contribution for the small- and medium-sized companies with 50 employees or below that who are not qualified for the federal help.

$500 financial aid would also be given as support for the almost 170,000 workers who are self-employed in Puerto Rico.

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