CNE – Centro Para Una Nueva Economía – Center for a New Economy
Non-profit, economic research and policy development organization
Incertidumbre significativa. Esa fue la frase que utilizĂł Jerome Powell, Presidente de la Junta de Gobernadores del Sistema de la Reserva Federal, para describir la recuperaciĂłn de la economĂa de Estados Unidos en su testimonio ante el ComitĂ© de Banca, Vivienda y Asuntos Urbanos del Senado de Estados Unidos.
De cara al Plan Fiscal más reciente, Sergio Marxuach presenta dos propuestas de polĂtica pĂşblica para adelantar el proceso de quiebra actual aĂşn con la gran incertidumbre que existe.
Además de atender la emergencia de salud pĂşblica producto de la pandemia del COVID-19, el gobierno de Puerto Rico tiene una cargada agenda de asuntos pendientes. Entre estos podemos mencionar la reestructuraciĂłn de la deuda del gobierno central; poner en marcha la reconstrucciĂłn de la infraestructura afectada por los huracanes de 2017 y los terremotos de este año; y la modernizaciĂłn de la Autoridad de EnergĂa ElĂ©ctrica (“AEE”), entre otros asuntos.
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.
