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Puerto Rico fiscal board requests extension on First Circuit stay

By on April 24, 2019

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Says disrupting its operations would have ‘devastating consequences’

SAN JUAN – The Financial Oversight and Management Board for Puerto Rico said Wednesday that it has requested the U.S. Court of Appeals for the First Circuit to extend the stay of its Feb. 15 ruling–which legitimizes the panel’s efforts “to achieve fiscal responsibility” on the island and that it gain access to the capital markets–pending the board’s petition to the U.S. Supreme Court for review of the case.

The First Circuit had declared the appointment of the board’s members unconstitutional, “a decision that is profoundly wrong and deeply destabilizing,” the fiscal panel said in its petition Tuesday for a writ of certiorari to the Supreme Court.

Absent a further stay, the board would be forced to cease operations May 16. Disrupting its operations “midstream would have immediate and devastating consequences for the Puerto Rican economy and the debt restructuring process that Congress determined was a critical necessity when it enacted PROMESA [Puerto Rico Oversight, Management, and Economic Stability Act] and created the Oversight Board,” the panel said in a release Wednesday.

The board further stressed it would be “unable to carry out its responsibility of certifying the fiscal year 2020 budgets for the Commonwealth and instrumentalities to ensure that they are compliant with the fiscal plans.”

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