People crowd Fort Lauderdale International Airport Michele Eve Sandberg/Getty Images

PROMESA’s Dangerous Premises

Improving Puerto Rico’s economic dynamics will require a new set of policies, including a debt restructuring that provides the country with the relief it needs to implement policies that enable a restoration of growth. But the ten-year fiscal plan that will provide the basis of debt-restructuring decisions could make a bad situation worse.

NEW YORK – Puerto Rico’s economy is in deep trouble. More than a decade of recession has made the public debt unsustainable and is fueling migration outflows to the United States mainland, affecting the lives of thousands of families and imposing a higher burden on those who stay. Reversing this destabilizing dynamic will require a debt restructuring that provides the relief needed to implement pro-growth policies. Unfortunately, what is being offered isn’t nearly enough.

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