Puerto Rico Government Development Bank

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 Trusters 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 wee reticent in assuming such ground-breaking risks.

Headquarters

Headquartered in the Roberto Sánchez Vilella Government Center in San Juan, Puerto Rico, the Bank will soon build its own headquarters building adjacent to the Sagrado Corazón Tren Urbano station near the Golden Mile (Milla de Oro) banking district. 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.

Philanthropy

During former Gov. Pedro Rosselló'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.

GDB Presidents

*Guillermo Rodríguez Benítez
*José Ramón González
*José Berrocal, 1991-1992
*Marcos Rodríguez Ema, 1993-1999
*Lourdes Rovira, 1999-2000
*William Lockwood, 2005-2006
*Alfredo Salazar, 2006-2008
*Jorge Irizarry, 2008-Present

Sources

* [http://www.gdbpr.com/gdbis/history#intro http://www.gdbpr.com/gdbis/history#intro]