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

The Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) is a U.S. federal law enacted in 2016 to address Puerto Rico's severe financial crisis. It established a federally appointed oversight board to manage the island's budget and restructure its public debt. The goal is to guide Puerto Rico toward financial recovery and stability while ensuring essential services continue to operate. PROMESA aims to balance fiscal responsibility with economic growth, helping the territory navigate its financial challenges while negotiating with creditors and implementing reforms.