HR 5278 Analysis

CNE has analyzed Puerto Rico’s economic and fiscal situation for more than a decade. During that period, we have carefully surveyed and considered the socioeconomic context and the rapidly deteriorating financial position of the island, and attempted to address some of the most pressing problems.

Análisis del HR 5278 y resumen ejecutivo

El proyecto NO cumple con el principio 1. El HR 5278 le confiere a la Junta de Control Fiscal poderes que exceden los necesarios para ejecutar una función de monitoreo y supervisión fiscal. La Junta será una entidad del gobierno de Puerto Rico pagada con fondos públicos de Puerto Rico, pero no estará sujeta al control o la supervisión de funcionarios locales; podrá forzar la ejecución de recomendaciones que hayan sido rechazadas por el Gobernador o la Legislatura de P.R.; podrá prohibir la ejecución de ciertas leyes, reglamentos, órdenes o contratos; podrá requerir la ejecución de medidas de privatización y comercialización de actividades gubernamentales; y de manejo de los fondos de pensiones de los empleados públicos.

Policy Brief: Possible Consequences of a Default on Puerto Rico General Obligation Bonds

Puerto Rico faces a serious fiscal and economic crisis. The island is over-indebted: with $70 billion in public debt outstanding and an additional $43 billion in unfunded pension liabilities, Puerto Rico has more debt, in absolute terms, than any U.S. state government except California and New York, while its economy is smaller than Kansas. The following chart compares Puerto Rico’s tax–supported debt (excluding debt issued by state-owned enterprises) and unfunded pension burden with three of the U.S. mainland’s lowest rated states.

The Endgame: An Analysis of Puerto Rico’s Debt Structure and the Arguments in Favor of Enacting a Comprehensive Debt Restructuring Mechanism for Puerto Rico

Puerto Rico’s debt structure is inordinately complicated. With no access to a broad debt restructuring mechanism, the chaos that a disorderly default could bring would further erode bondholder value, increase restructuring costs, depress the local economy, and make long-term recovery harder to achieve.

There Is Another Way: A Fiscal Responsibility Law for Puerto Rico

There Is Another Way: A Fiscal Responsibility Law for Puerto Rico Published on February 8, 2016 / Leer en español Deepak Lamba-Nieves Research Director Sergio M. Marxuach Policy Director DOWNLOAD Executive Summary Full Report SHARE Introduction Puerto Rico’s drawn-out economic and fiscal crisis has prompted a series of debates on how to address a rapidly Read More

Will Congress Let Chaos Prevail? Countdown to Chapter 9 for Puerto Rico

As Washington debates whether or not to approve access by Puerto Rico to some version of Chapter 9 of the U.S. Bankruptcy Code, the negative implications of a disorderly default looms large on the horizon of both island residents and bondholders. An analysis by CNE of Puerto Rico’s “insanely convoluted” debt structure has found that Read More

What A Debt Default Would Look Like Without Chapter 9 (related documents)

As the clock ticks for Puerto Rico, what would a debt default look like without the recourse of Chapter 9 of the U.S. Bankruptcy Code? With all probability, players will face years of nonpayment, an utterly complex maze of claims and counterclaims, protracted litigation, and a myriad of open, unresolved legal questions. In the following Read More