On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Javier Balmaceda of the Center on Budget and Policy Priorities (CBPP) discusses with our team his perspective on Puerto Rico’s ongoing eight-year restructuring effort.

To kick off the podcast, Javier provides his personal and professional background and its relevance to his current role at CBPP and in understanding Puerto Rico’s economic and financial situation.

The conversation turns to a discussion amongst the podcast participants (Paul Greaves, moderator and managing editor of Debtwire Municipals; Greg Clark, head of muni research; and Simone Baribeau, reporter on the team) about whether the debt restructuring, and debt reduction efforts has been sufficient to position the island for long-term success.

Javier responds that current efforts have been insufficient because the pre-restructuring assessment of the commonwealth’s economy was inadequate as it had always been weak and the safety net for island residents’ pales to what is provided to mainland states. He then adds the exogenous shocks of catastrophic weather events and COVID-19 exacerbated matters.

The dialogue turns to providing some bondholder perspective, as evidenced through their recent court filings.

Javier then moves the conversation to the developments he found the most surprising in the island’s restructuring.

Javier concludes with his recommendations for a sustainable fiscal and economic path.

Javier Balmaceda is a senior policy analyst with CBPP’s federal fiscal policy team. His main area of focus is Puerto Rico, with a particular eye on federal initiatives to resolve the commonwealth’s fiscal and economic challenges.

Paul Greaves, who serves as the moderator and is the managing editor for Debtwire Municipals; Greg Clark, the head of muni research who brings over 40 years of municipal analyst expertise; and Simone Baribeau, reporter on the team who covers the Puerto Rico, healthcare and project finance beats.

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