Puerto Rico Development Bank Goes to Court for $400 Million in Taxes
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A caretaker at the Normandie Hotel, which has been closed since 2008, in San Juan, Puerto Rico. The island, in the grip of a debt crisis, is imposing new taxes. CreditAlvin Baez/Reuters
A new front opened in Puerto Rico’s debt battle as the island’s powerful Government Development Bank went to court, seeking $400 million in local property tax revenue it said was being illegally held by a local collection agency.
The development bank said the money was crucial to its ability to make coming payments to bondholders.
The agency that collects property taxes on the island, the Municipal Revenue Collections Center, or CRIM, appears to have the $400 million in hand. But its board decided late in June not to release the money to the bank. The development bank, which handles Puerto Rico’s borrowing and cash flows, said the move was illegal and asked the Superior Court in San Juan to require the agency to turn over the money. The legal documents were filed Wednesday night…
Puerto Rico Development Bank Goes to Court for $400 Million in Taxes
