Puerto Rico Government Development Bank
Encyclopedia
The Government Development Bank of Puerto Rico (GDB) was the brainchild of Governor Rexford Guy Tugwell, who signed Law 252 of May 13, 1942, creating the institution in charge of economic development for the Government of Puerto Rico
. A subsequent law in 1945 expanded its responsibilities to include serving as the fiscal agent for, and financial advisor of, the government of Puerto Rico. The highly centralized government structure set up by Tugwell, one of President Franklin Delano Roosevelt's Brain Trust
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.
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, when private banks were reticent in assuming such ground-breaking risks.
Government Center in an Juan, Puerto Rico]. A proposal by Senate President Kenneth McClintock
to name the new headquarters building after Governor Rexford Guy Tugwell, who founded the bank and whose name has not been given to any significant public works project on the island, was vetoed by Governor Aníbal Acevedo Vilá
in 2006.
'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
, which, within years, has become the island's second-best art museum, after the Ponce Museum of Art
founded by don Luis A. Ferré
, a philanthropist and former Governor.
Government of Puerto Rico
The Government of Puerto Rico is a republican form of government subject to U.S. jurisdiction and sovereignty. Its current powers are all delegated by the United States Congress and lack full protection under the United States Constitution...
. A subsequent law in 1945 expanded its responsibilities to include serving as the fiscal agent for, and financial advisor of, the government of Puerto Rico. The highly centralized government structure set up by Tugwell, one of President Franklin Delano Roosevelt's Brain Trust
Brain Trust
Brain trust began as a term for a group of close advisors to a political candidate or incumbent, prized for their expertise in particular fields. The term is most associated with the group of advisors to Franklin Roosevelt during his presidential administration...
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.
Expanding role
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, when private banks were reticent in assuming such ground-breaking risks.
Headquarters
Headquartered in the Roberto Sánchez VilellaRoberto Sánchez Vilella
Roberto Sánchez Vilella was the second Governor of the Commonwealth of Puerto Rico from 1965 to 1969. He was born in Mayagüez, Puerto Rico...
Government Center in an Juan, Puerto Rico]. A proposal by Senate President Kenneth McClintock
Kenneth McClintock
Kenneth D. McClintock-Hernández is the current Secretary of State of Puerto Rico. Mr. McClintock served as co-chair of Hillary Clinton presidential campaign's National Hispanic Leadership Council in 2008, co-chaired Clinton's successful Puerto Rico primary campaign that year and served as the...
to name the new headquarters building after Governor Rexford Guy Tugwell, who founded the bank and whose name has not been given to any significant public works project on the island, was vetoed by Governor Aníbal Acevedo Vilá
Aníbal Acevedo Vilá
Aníbal Salvador Acevedo Vilá is a Puerto Rican politician and lawyer. He served as the eighth Governor of the Commonwealth of Puerto Rico, a Commonwealth of the United States, from 2005 to 2009. He is a Harvard University alumnus and a graduate of the University of Puerto Rico School of Law,...
in 2006.
Philanthropy
During former Gov. Pedro RossellóPedro Rosselló
Pedro Juan Rosselló González, M.D., , is a Puerto Rican physician and politician who served as the sixth Governor of the Commonwealth of Puerto Rico from 1993 to 2001...
'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
Puerto Rico Museum of Art
The Museum of Art of Puerto Rico is one of the most prestigious art museums in Puerto Rico.-History:...
, which, within years, has become the island's second-best art museum, after the Ponce Museum of Art
Ponce Museum of Art
Museo de Arte de Ponce, or MAP, is an art museum located on Las Americas Avenue in Ponce, Puerto Rico. It is considered the finest art museum in Puerto Rico. It houses a collection of European art, as well as work by Puerto Rican artists. The largest art museum in the Caribbean, it has also been...
founded by don Luis A. Ferré
Luis A. Ferré
Don Luis Alberto Ferré Aguayo was a Puerto Rican engineer, industrialist, politician, philanthropist, and a patron of the arts. He was the third Governor of the Commonwealth of Puerto Rico from 1969 to 1973, and the founding father of the New Progressive Party which advocates for Puerto Rico...
, a philanthropist and former Governor.
GDB Presidents
- Guillermo Rodríguez Benítez, 1953-1957, 1975
- Julio Pietrantoni Blasini, 1978-1985
- José Ramón GonzálezJosé Ramón GonzálezJosé Ramón González is a Puerto Rican businessman. He is the Senior Executive Vice President of Oriental Financial Group and former CEO of Santander Puerto Rico, Puerto Rico's second largest financial institution. González also served as president of the Puerto Rico Government Development Bank...
- José Ramón OyolaJosé Ramón OyolaJosé Ramón Oyola is a banker from Puerto Rico who was selected by Governor Rafael Hernández Colón for appointment by the Board of Director of the Puerto Rico Government Development Bank to serve as the institution's president from 1985 to 1986...
(1985-1986) - Ramón Cantero Frau (1988-1991)
- José BerrocalJosé BerrocalJosé Berrocal was the youngest president of Puerto Rico Government Development Bank .- Early years; Education :Berrocal was born in 1957 in Puerto Rico....
, 1991-1992 - Marcos Rodríguez Ema, 1993-1999
- Lourdes Rovira, 1999-2000
- Hector Méndez
- Antonio Faría Soto
- William Lockwood Benet, 2005
- Alfredo SalazarAlfredo SalazarAlfredo Salazar is an economist and politician affiliated with the Popular Democratic Party . He is currently running for the office of Resident Commissioner of Puerto Rico to the United States Congress in the upcoming 2008 elections...
, 2006-2008 - Jorge Irizarry, 2008
- Carlos M. GarcíaCarlos M. GarcíaCarlos M. García, born on June 25, 1971, is a Puerto Rican banker who served as president of the Puerto Rico Government Development Bank from 2009 to 2011 during the administration of Governor Luis Fortuño....
, 2009-2011 - Juan Carlos Batlle, 2011-