Puerto Rico hearing exposes split over bill to let public development bank offer mortgages, credit cards

SAN JUAN — Lawmakers heard sharply divided testimony June 16 on House Bill 701 (PC 701), which would amend Articles 2 and 3 of Ley Núm. 22 del 24 de julio de 1985 (the enabling law for the Banco de Desarrollo Económico, or BDE) to allow the BDE to offer residential mortgages, consumer loans and credit cards.

Supporters, led by Carmen Vega, president of the Banco de Desarrollo Económico para Puerto Rico, said the changes would expand access to credit for young people, small businesses and underserved borrowers. Vega told the commission the bank is preparing operational and regulatory steps and said, “La apertura para nuevos productos es saludable y a quien único beneficia es al pueblo de Puerto Rico.” She described planned partnerships with card networks and training programs for prospective borrowers.

Opponents, led by the Asociación de Bancos de Puerto Rico, argued the bill would push the development bank beyond its statutory development role and create fiscal and operational risk. Mea Álvarez Rubio, president of the association, said the measure “alejar al Banco de Desarrollo Económico peligrosamente de su rol…