Our PROMESA

Our PROMESA

The Puerto Rico Oversight Management and Economic Stability Act (PROMESA) is a false promise to the Puerto Rican people

From the gates of the University of Puerto Rico at Mayagüez, a diverse group of students have created this website to facilitate the creation of proposals and to present information in regards to the current situation of the UPR and Puerto Rico.
We believe that the student body has the right to express themselves against decisions that will affect the public education of the island.
Increasing the standard cost per credit to $120. The maximum subsidy provided by the FAFSA family contribution would be $64. Those who do not qualify for the FAFSA would not get this subsidy.
According to the plan presented by the president of the UPR, the estimates for the year 2026 of student population will go down to 56,000 (6,000 less than there are today). These cuts put university accessibility at risk.

  • During the past term, the administration of Alejandro García Padilla declared that the debt was unpayable. In other words, Puerto Rico does not have enough money to fulfill the payment of the bonds.

  • The Commonwealth of Puerto Rico’s Constitution states on Article VI, Section VIII that:

  • “When the available resources for a fiscal year are not sufficient to cover the assigned appropriations approved for that year, the first payment will go to interests and the redemption of the public debt, and then the other disbursements will be made according to the priorities established by law.” [Constitution of PR Art VI SS8]
  • This means that the debt has a priority to be paid first, then essential services for the citizens are financed; For example, health services, education, among others.

  • If Puerto Rico is not be able to comply with the payment of the debt first, the bondholders, protected by the Constitution of Puerto Rico, would sue the government to comply with said payments.

  • Faced with this precarious situation, the Congress of the United States, which is the supreme authority regarding all of Puerto Rico’s and other Territory’s affairs, approved during the summer of 2016 the PROMESA law. This law enforced a halt to all lawsuits against Puerto Rico, lasting until May 2017.

On May 1st 2017, the halt on the lawsuits expired, and the governor did not reach an agreement with the bondholders. Bondholders began to sue the government of Puerto Rico and demanded what is constitutionally theirs. The governor, having no more options, filed the Title III of the PROMESA law to establish that the country is in a "bankruptcy". Title III is a court-supervised restructuring. Charges associated with the debt are stopped until the case is not seen in federal court with the creditors. Now Puerto Rico will be represented in the court by the members of the Fiscal Control Board (JCF), where they will determine how the debt will be paid.
Title III is a court-supervised restructuring of the debt. Title III is only filed if the government and its creditors do not reach an agreement that pleases the interests of both parties for the payment of the debt.
  • Payments to the debt are stopped and it is established that all government creditors have to compete to justify being paid first, whether they are bondholders or not.

  • Title III is filed after the expiry of the halt of the litigation. This halt protected Puerto Rico from lawsuits filed by the creditors demanding payment of the debt. The halt culminated on May 1, 2017.

  • Title III is a hybrid between Chapter 9 and Chapter 11 of the Federal Bankruptcy Code, which allows the halt of litigation to be extended, and offers alternatives for the country.

  • That is, if the Government is authorized by Title III, it can renegotiate the debt with its creditors, but could jeopardize collective agreements, pensions, or any contractual obligation.

  • In addition, it states that the outcome of an adjustment plan can be applied retroactively to creditors (once certain requirements are met).

  • When applying for Title III, the Puerto Rico Federal District Court may reject the application, and may even freeze certain assets of the country while in the mediation process, which could last around 120 days.

  • The Fiscal Control Board is then in charge of representing the government in court; In addition, they would also present a new adjustment plan for the debt.