CNE – Centro Para Una Nueva Economía – Center for a New Economy
Non-profit, economic research and policy development organization
On Feburary 25, 2020, CNE Policy Director Sergio M. Marxuach shared an overview of legal issues related to Puerto Rico’s debt restructuring process at a panel hosted by the University of Puerto Rico.
Rosanna Torres and Sergio M. Marxuach, CNE’s Washington DC Office Director and Public Policy Director, provided written testimony on October 30 for a hearing of the US House of Representatives Committee on Natural Resources on the issue of possible amendments to the PROMESA legislation.
On May 3, 2019, the Puerto Rico Electric Power Authority (“PREPA”), the Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), and the Financial Oversight and Management Board for Puerto Rico (the “FOMB”), executed a “Definitive Restructuring Support Agreement” (the “RSA”), with the members of the Ad Hoc Group of PREPA Bondholders (the “Ad Hoc Group”), and Assured Guaranty Corp. and Assured Guaranty Municipal Corp. (collectively, “Assured”), for the restructuring of a portion of certain bonds issued by PREPA.
On February 4, Judge Laura Taylor Swain issued (1) A Memorandum Opinion and Order Approving Settlement Between Commonwealth of Puerto Rico and Puerto Rico Sales Tax Financing Corporation (the “Commonwealth – COFINA Settlement”) and (2) A Memorandum of Findings of Fact and Conclusions of Law in Connection with Confirmation of the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation (the “POA Confirmation Order”).
During the past few months a narrative has taken hold, on both sides of the political spectrum, that Puerto Rico is “using federal disaster relief funds to pay bondholders”. This narrative is wrong and dangerously simplistic.
Recientemente la Government Accountability Office (“GAO”) publicó un informe sobre la deuda de Puerto Rico. Los hallazgos principales del informe no deben sorprender a nadie.
Seis miembros de la Junta de Control Fiscal (“JCF”), aprobaron el Plan Fiscal para el gobierno de Puerto Rico el pasado 19 de abril. En términos conceptuales, el Plan consiste en la implementación de (1) un programa de reformas estructurales; (2) un programa de consolidación fiscal; y(3) un programa de reconstrucción financiado por el gobierno federal.
El pasado 12 de febrero el gobierno de Ricardo Rosselló presentó la tercera iteración de su Plan Fiscal para Puerto Rico. En términos generales, esta versión del Plan tiene tres componentes principales: (1) Una revisión del escenario económico base tomando en consideración la asignación de fondos federales para la reconstrucción de la infraestructura destruida por el huracán María
