puerto rico

PROMESA and the Recovery Act

05/22/16

It has become something like conventional wisdom that the pending SCOTUS case involving the Recovery Act is no longer relevant. After all, the giant interest payment due July 1 is largely attributable to GO bonds, and the Commonwealth itself is not even subject to the Recovery Act.

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PROMESA observations

05/19/16

After taking a look at titles III and VI of the new draft, some quick observations:

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PROMESA amusement

05/19/16

I'm still working through the new draft of the PROMESA bill, which readers will recall provides new restructuring options for US territories (including Puerto Rico, of course). But I have to say I got a chuckle out of proposed section 303(3), which provides:

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Trump: Puerto Rico Needs to Write Down Debt

05/05/16

The push to empower the territory of Puerto Rico to write down its debts–something supported by the Obama administration, the island’s government, and some Republican leaders in Congress–appeared to gain backing Wednesday from Donald Trump, the likely Republican presidential nominee.

“The problem with Puerto Rico—there’s far, far, far too much debt,” Mr. Trump said in an interview with CNN. “Don’t forget: I’m the king of debt. I love debt… I understand that stuff better than anyone else.”

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Puerto Rico: Legislative Update

04/18/16

It appears that the House legislation has bogged down.  Two or three issues keep coming up, none of which make a whole lot of sense:

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Puerto Rico Debt Legislation: Where It Stands in Congress

04/18/16

[wsj-responsive-image P="https://si.wsj.net/public/resources/images/BN-HQ748_puerto_M_20150330135850.jpg" J="https://si.wsj.net/public/resources/images/BN-HQ748_puerto_M_20150330135850.jpg" M="https://si.wsj.net/public/resources/images/BN-HQ748_puerto_M_20150330135850.jpg" caption="Beachgoers soak up the sun in San Juan, Puerto Rico. " credit="KRISTI EATON/ASSOCIATED PRESS" placement="Inline" suppressEnlarge="false" ignorerespwidth="1280" ignorerespheight="853" ]

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Puerto Rico Restructuring Options That Don't Rely on Congress

04/15/16

The revised draft PROMESA bill (available here) is now under debate in Congress. The bill appears to respond to some early criticisms, although its length and complexity obscures answers to some important questions. Under the circumstances, it seems sensible for the Commonwealth to consider all of its options, including those that do not require Congressional action.

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Puerto Rico: PROMESA draft bill, title III revised

04/14/16

I again offer some initial thoughts on the revised draft bill, now subject to much debate in Congress:

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Puerto Rico’s Debt Crisis in Seven Questions

04/13/16

Congress begins considering legislation Wednesday that addresses Puerto Rico’s debt crisis. Here’s a look at seven frequently asked questions:

How did Puerto Rico end up with so much debt?

The island’s economy has been in recession since 2006, and Puerto Rico’s government borrowed aggressively to balance its budget. It has around $70 billion in debt, up from $24 billion in 2000. To skirt debt-sustainability requirements, it devised new bond issues with competing security pledges.

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