Posted on 02/22/2022 7:28:49 AM PST by SeekAndFind
Last month, the architects of The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) got to see the fruits of their work. Federal Judge Taylor Swain gave judicial nod for the plan of adjustment of Puerto Rico’s debts after years of tough negotiations and litigation. This paves the way for the largest restructuring of public sector debt in US history and the eventual exit of the Financial Oversight and Management Board from the island.
The reaction of the main actors in this saga of negotiation and litigation has been mostly positive, with the executive director of the oversight board, Natalie Jaresko, declaring in a statement, “Today begins a new chapter in Puerto Rico’s history. Today, Puerto Rico can start to move on from fiscal instability and insolvency into a future of opportunity and growth,” Democrat Governor Pedro Pierluisi joined in stating, “The agreement, although not perfect, is very good for Puerto Rico and protects our pensioners, the University, and our municipalities, which serve our people,"
The policy triumphalism of some of these actors has some merit, as the plan reduces a considerable portion of Puerto Rico’s debt obligations and save billions of dollars in debt payments. An important achievement for a Commonwealth government that in May of 2017 declared to the world, that it couldn’t fulfill its obligations to bondholders and pension systems.
However, despite this triumphalism, structural problems and a political culture that operates outside of fiscal reality mean that Puerto Rico may once again find itself in the same fiscal mess that it has for now left.
The plan of adjustment has restructured the debts of Puerto Rico, but there has been a failure to pursue the structural reforms needed for a healthy economy and fiscal outlook.
(Excerpt) Read more at americanthinker.com ...
Crash the system, the sooner the better.
Who buys PR bonds, anyway?
( I hope my bond funds in my IRA don’t.)
/S LOLOLOLOLOLOLOLOLOL!!!
Then again, maybe if Congress tried imposing fiscal responsibility on a third party, they might learn lessons they could apply to themselves.
"I can make you mine, taste your lips of wine
Anytime night or day
Only trouble is, gee whiz
I'm dreamin' my life away
The only thing ruining Puerto Rico are Puerto Ricans. It will always be a craphole. Time to cut them loose from the USA.
All true but I see history repeating itself yet again. Will be on the island in April visiting members of my wife’s (who was born here on the mainland) family so look forward to hearing their perspective firsthand.
Agree, make them their own country. Within a few years there will be another Haiti like country in the Caribbean.
Trump should have appointed AOC as czarina of PR and then cast it adrift.
Set her up with pockets full of cash first. That is an excellent strategy.
we give them about 20 billion a year
Time to give PR its independence...
What a bunch of blah blah blah
Translation:
Have trouble paying? Just “adjust” what you owe and go one spending like there is no tomorrow.
“but there has been a failure to pursue the structural reforms needed for a healthy economy and fiscal outlook.”
Hmmm, that’s sounds familiar somehow.
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