PROMESA Advisory Working Group
The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) creates an administrative structure that exercises federal oversight over the fiscal affairs of Puerto Rico, and under certain conditions other territories. PROMESA establishes an Oversight Board with broad powers of budgetary and financial control over Puerto Rico and also creates specific legal procedures for adjusting debts accumulated by the Puerto Rico government and its instrumentalities throughout decades. On the economic development side, PROMESA would expedite approvals of key critical infrastructure projects including energy projects as well as other critical infrastructure projects for Puerto Rico’s economic development.
PROMESA therefore constitutes a new paradigm for bondholders, private contractors, service providers and Commonwealth instrumentalities, including Municipalities, as PROMESA promotes debt restructuring, recurrent fiscal planning and other detailed budgetary measures that seek to stabilize Puerto Rico´s economy and will seriously impact all involved. It also represents an enormous judicial and fiscal intervention on Puerto Rico’s fiscal matter thereby requiring an enormous need to monitor, analyze and work before the Fiscal board in order to articulate clients’ needs and positions before this new and relevant entity and all its challenges. In QA&C we have been closely following PROMESA´s development and implementation, and we have assembled a team of experimented lawyers that bring their ample governmental and fiscal affairs know-how to help our clients to successfully steer through this new universe of PROMESA and the Oversight Fiscal Board.