Puerto Rico Oversight, Management and Economic Stability Act

United States [2016]

Also known as: PROMESA

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Last updated

July 21, 2026

Quick Summary

The Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) was enacted in 2016 by the U.S. Congress. This legislation was a response to Puerto Rico's severe financial crisis, where the island's government accumulated over $70 billion in debt and could no longer meet its obligations.1

PROMESA created a federally appointed oversight board to manage Puerto Rico's finances. Crucially, it allowed Puerto Rico to restructure its debt, providing a form of bankruptcy relief that was previously unavailable to the island. This act aimed to stabilize the island's economy and establish a path toward fiscal recovery.21

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Puerto Rico
The debate over political status
…Obama signed into law the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), which authorized the Puerto Rican government to restructure more than $70 billion in debt. The act also created a federally appointed seven-member oversight board to control Puerto Rico’s finances, a stipulation that was only grudgingly accepted…
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…Obama signed into law the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), which authorized the Puerto Rican government to restructure more than $70 billion in debt. The act also created a federally appointed seven-member oversight board to control Puerto Rico’s finances, a stipulation that was only grudgingly accepted…
Read More