The man who once ran Latin America’s healthiest economy has some advice for Puerto Rico: adopt a “fiscal rule” that slashes debt by setting surplus targets over the long term so the commonwealth has room to spend more during recessions.
Chile’s former finance minister and an ex-lieutenant governor of New York will be among five panelists appearing Wednesday in Washington, D.C., to discuss how a Fiscal Responsibility Law (FRL) might help stabilize Puerto Rico’s public finances and overhaul the island’s fiscal infrastructure.
Puerto Rico’s current fiscal problems are bringing up unprecedented issues that will likely be subject to interpretation by local and federal courts if the government defaults on its debt and bondholders decide to defend their contractual rights via the lawsuit route.
A Dow Jones/Factiva content provider since 2014
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