A decade after its enactment, the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) has fundamentally restabilized the island’s fiscal trajectory.
By implementing standard accounting practices, safeguarding public pension benefits through an innovative trust, and dramatically cutting tens of billions in outstanding bond debt, the framework has successfully established a reliable foundation for Puerto Rico’s economic independence.
In this Law360 article, “PROMESA Turns 10: Puerto Rico’s New Start, Unclear Future,” CRA’s Bradley Wendt provides expert commentary on the decade-long restructuring process, characterizing PROMESA as an “unqualified success” to date. Wendt, a former senior adviser at the US Department of the Treasury:
- Analyzes how the framework successfully prevented a chaotic “race to the courthouse” by creditors
- Details the precedent-setting structural reforms used to shield and fund public pensions
- Evaluates the remaining long-term structural hurdles, noting that the uniquely complex challenges facing Puerto Rico’s electric utility (PREPA) always meant its modernization and debt resolution would follow an extended timeline
Click here to download the article and learn more about Puerto Rico’s financial future.
