An Evolving Response in Puerto Rico

As a member of the Oversight Board charged with working with Puerto Rico to restructure its debt, we may be able to draw lessons for states and cities in the urgency with which Puerto Rico is responding to the novel coronavirus. Puerto Rico has been ahead of the curve in its response. Governor Wanda Vázquez implemented curfews, ordered businesses to shut down, and urged Puerto Ricans to practice social distancing in mid-March, before most U.S. cities and states took similar action.

The Oversight Board is supporting these efforts, as appropriate, in any we can. We responded early by releasing on March 13 the $160 million we had set aside in a rainy day fund for emergency expenses related to the coronavirus. We then worked with the government on a $787 million additional package of measures to address the pandemic, including measures such as bonuses for nurses and others on the front line, investments in hospitals and education, support of individuals and small businesses affected by the crisis, as well as funds for municipalities that are losing revenue. Additionally, due to the spread of coronavirus we have put on hold a proposed restructuring of Puerto Rico’s debt and approved the government request for a $400 million cash advance to expedite distribution of CARES Act funding. Our response is very much ongoing, and may include additional measures as the crisis continues.

David Skeel is S. Samuel Arsht Professor of Corporate Law, Penn Law; member of the Financial Oversight and Management Board for Puerto Rico; and a Penn IUR Faculty Fellow.

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