Puerto Rico is in a social, economic, and debt crisis caused by a severe and lasting recession. The collapse of economic activity has resulted in debt becoming a huge burden on the territory, further destabilizing economic activity. Most stakeholders recognize this reality.
As part of an agreement with Espacios Abiertos and the Center for a New Economy, in 2017 a group of researchers including renowned international experts in public debt issues, led by Columbia University economist Martin Guzman, undertook a project seeking to shed light on Puerto Rico’s needs in terms of restructuring its public debt. The results of the study were presented in January 2018 and provide valuable information on the central elements that must be adopted when designing a fiscal plan, as well as a proposal laying the foundation for a feasible debt restructuring that would enable the recovery of Puerto Rico. This study was published in the Law Review of the University of Puerto Rico and in the National Bureau of Economic Research.
In May 2019, faced with the new reality presented by the effects of Hurricanes Irma and Maria on Puerto Rico, the COFINA Agreement, and the adoption of the new Fiscal Plan for October 2018, Professors Guzman and Gluzmann carried out a new study on Puerto Rico’s debt relief needs.