Kelly Motta: I appreciate the color. That was my follow-up. I’ll step back then. Thank you.
Ignacio Alvarez: Thank you.
Operator: Thank you. Our final question comes from Gerard Cassidy from RBC Capital. Gerard, your line is now open. Please go ahead.
Gerard Cassidy: Thank you. Good morning, Ignacio and Carlos. Ignacio, can you guys give us some color? Obviously, Puerto Rico over the years has had a healthy manufacturing component to your economy. I know in your prepared remarks, that you talked about tourism and how well that’s going. In the state side, there is clear evidence of the onshoring of manufacturing coming back to Ohio or Indiana, et cetera. Are you guys seeing any evidence of the benefit of that possibly coming to Puerto Rico?
Ignacio Alvarez: The manufacturing sector, based on the economic activity index is relatively healthy in Puerto Rico. It’s been growing. Sometimes it goes up for a few quarters and then it goes down a bit. But frankly, it’s been mostly in our traditional sectors. The medical device sector, which has been very strong in Puerto Rico, also the aerodynamic area, the technology relating to airplanes and motors and that kind of things is very popular on the West Coast. I haven’t seen to date many brand-new – at the beginning of last year, we saw a couple of foreign firms come in an Indian company, I believe, a Mexican company. So we’ve seen some foreign people – foreign firms that don’t have perhaps any presence in the U.S. using Puerto Rico as their initial point, especially in the pharmaceutical, the generic pharmaceutical side.
But to be honest, I haven’t seen a big impact from the onshore in yet. We had a big promise for that, but it’s been mostly the dynamism has been in and there are traditional sectors that have been growing.
Gerard Cassidy: Very good. And then as a follow-up, I believe the PREPA bankruptcy schedule was suspended in June. Do you guys have any updates on what’s going on there with the bankruptcy of PREPA resolution that is?
Ignacio Alvarez: Not really. We don’t know really more than we read in the press. I mean, we’re optimistic that the most recent proposal will get approved. Obviously, it means they’re cutting the debt down more and the rates will obviously have to go up less than on the prior plan. So we’re optimistic that we can get this behind us. But really, we don’t have a lot of inside baseball on what’s going on there behind the scenes.
Gerard Cassidy: Got it. And I apologize if you addressed this, I came late on to the call. But did you guys, Carlos, give us the burn-down rate for the next couple of years of the bond portfolio? What percentage of it will pay off and by now and the end of 2024.
Jorge Garcia: Yes. I mean it’s on Page 8 of the deck, Gerard. So that kind of gives you an idea, so I mean it’s some pretty aggressive roll down in the treasury portfolio for the next two years. MBS is they’ll be kind of present there. They’re paying very slowly. So that’s something that, as Carlos mentioned, if you have a rate reversal and prepayment fees start to pick up again, you could see some acceleration there, but we’re not necessarily forecasting that. You have about $8 billion or so that has – that’s an AFS and treasuries that has an average life of around 1.5 years. So I’ll kind of give you an idea of how that rolls in. As Carlos mentioned, just complementing that, we’d probably be at least for now reinvesting some of those proceeds and T-bills, treasury curves inverted. So actually picking up yield a bit doing that and maintaining a relatively shorter portfolio as well.
