PROMESA (Puerto Rico Oversight, Management, and Economic Stability Act)

PROMESA, or the Puerto Rico Oversight, Management, and Economic Stability Act, is a U.S. law enacted in 2016 to address Puerto Rico's significant financial crisis. It established an oversight board to help the territory restructure its debt and improve its financial management. The act aims to restore fiscal stability and promote economic growth while ensuring essential services to residents. It allows Puerto Rico to renegotiate its debts, similar to bankruptcy protections, to achieve sustainability and stability for its economy and government finances.