The Government Development Bank for Puerto Rico (GDB) — es, Banco Gubernamental de Fomento para Puerto Rico (BGF)— is the
government bond
A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments'','' and to repay the face value on the maturity dat ...
financial advisor
A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory ...
proxy
Proxy may refer to:
* Proxy or agent (law), a substitute authorized to act for another entity or a document which authorizes the agent so to act
* Proxy (climate), a measured variable used to infer the value of a variable of interest in climate re ...
, or owe debt to the bank itself (as the bank is a government-owned corporation as well).
History
The Bank was the brainchild of Governor
Rexford Guy Tugwell
Rexford Guy Tugwell (July 10, 1891 – July 21, 1979) was an American economist who became part of Franklin D. Roosevelt's first "Brain Trust", a group of Columbia University academics who helped develop policy recommendations leading up to ...
, who signed Law 253 of May 13, 1942, creating the institution in charge of economic development for the
Government of Puerto Rico
The government of Puerto Rico is a republican form of government with separation of powers, subject to the jurisdiction and sovereignty of the United States.Franklin Delano Roosevelt
Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
's
Brain Trust
Brain trust was a term that originally described a group of close advisers to a political candidate or incumbent; these were often academics who were prized for their expertise in particular fields. The term is most associated with the group of ad ...
ers required such a fiscal agent, contrary to the model followed by most states, in which each agency and political subdivision is responsible for issuing its own bonds.
During its formative years, the GDB helped financially structure the Puerto Rico Water Resources Authority, the new publicly owned electric company that generated much of its power from a hydroelectric system. During its first decade, GDB financed infrastructure development, particularly the development of low-cost housing.
Between 1951 and 1965, the GDB issued over $1 billion in bonds to finance the islands' infrastructure, contributing to Puerto Rico's economic growth. It also spurred the growth of the private sector, financing Puerto Rico's first condominium and several of its first shopping centers built in 1956, when private banks were reticent in assuming such ground-breaking risks.
During former Gov.
Pedro Rosselló
Pedro Juan Rosselló González, (; born April 5, 1944) is a Puerto Rican physician and politician who served as the governor of Puerto Rico from 1993 to 2001. He was President of the New Progressive Party from 1991 to 1999 and 2003 to 2008, a ...
's administration, and under Marcos Rodríguez Ema's presidency, the GDB established, financed and gave to the people of Puerto Rico the new
Puerto Rico Museum of Art
The Museum of Art of Puerto Rico ( Spanish: ''Museo de Arte de Puerto Rico'', abbreviated MAPR) is an art museum in Santurce, a barrio of San Juan, Puerto Rico, with 18 exhibition halls. The museum is located in a historic building, formerly occu ...
, which, within years, has become the island's second-best art museum, after the
Ponce Museum of Art
Museo de Arte de Ponce (MAP) is an art museum located on Avenida Las Américas in Ponce, Puerto Rico.Commonwealth of Puerto Rico, Puerto Rico Tourism Company. Ven al Sur, page 20. San Juan, Puerto Rico, 2003. It houses a collection of European a ...
founded by
Luis A. Ferré
Don Luis Alberto Ferré Aguayo (February 17, 1904 October 20, 2003) was a Puerto Rican engineer, industrialist, politician, philanthropist, and a patron of the arts. He was the governor of Puerto Rico from 1969 to 1973. He was the founder of the ...