Dr. Robert Shapiro: "For the Sake of Its Credibility, the P.R. Government Should Pay Doral Now"

WASHINGTON, Oct. 13, 2014 /PRNewswire/ -- In response to Friday's court ruling requiring the Government of Puerto Rico to honor the Doral Financial Corporation tax agreement, former Undersecretary of Commerce for the Clinton Administration and economic advisor to Doral issued the following statement:

"The courts have spoken and validated Doral's tax claim.  I hope that the Government of Puerto Rico will respect this ruling and the rule of law, and pay Doral the money it is entitled to.  Unfortunately, Governor Garcia Padilla may not have gotten the message.  The statements that his administration will not at this time abide by the court's decision is a warning to investors about the willingness of Puerto Rico's current government to honor its commitments.

This is a dangerous step.  Today Puerto Rico's government refuses to pay Doral.  Should Puerto Rico's bondholders and investors be worried about tomorrow?  They need to know they can trust that the Commonwealth government will pay its bills and honor its commitments.  Right now, the Governor Garcia Padilla is damaging that trust.

My research has demonstrated that Puerto Rico and its government have the financial capacity to pay Doral.  For the sake of its credibility and the Puerto Rican economy, it should do so now."

For more information on case of Doral vs. the Hacienda and events leading up to the court decision, visit www.DoralPuertoRicoFacts.com.

Doral Financial Corporation is a bank holding company engaged in banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries Doral Bank, with operations on the mainland U.S. (New York metropolitan area and northwest region of Florida) and Puerto Rico. Doral Financial Corporation's common shares trade on the New York Stock Exchange under the symbol DRL.

Contact: Miriam Warren
mwarren@dcigroup.com; 202 772-2186

Says Governor Garcia Padilla is Damaging Investors' Trust

Dr. Robert Shapiro: "For the Sake of Its Credibility, the P.R. Government Should Pay Doral Now"