Puerto Rico marks a decade under PROMESA – a timeline
15th June 2026 04:44 PM
Puerto Rico is on the brink of marking ten years since the crisis that led to the largest municipal bankruptcy in US history, with more than USD 70bn in debt and more than USD 55bn in unfunded pension liabilities.
On 30 June it will be a decade since the enactment of the Puerto Rico Oversight, Management, and Economic Stability Act of 2016 (PROMESA), which created the Financial Oversight and Management Board (FOMB) and established a framework under which the island’s debt could be restructured. On 1 July 2016, the commonwealth defaulted on a USD 779m general obligation debt service payment.
Resolution of the Puerto Rico Electric Power Authority’s (PREPA) Title III case remains the main obstacle to closing this era. The final chapter, meanwhile, still depends on four consecutive balanced budgets developed by the territorial government under modified accrual accounting standards and a return to credit markets, which the FOMB expects before FY29 ends.
Debtwire has extensively covered Puerto Rico throughout this period. With that in mind, please see below a 10-year timeline looking back at the main events that have marked this long path, with brief descriptions and links to the key stories that have shaped the commonwealth’s last decade.
| Year | Date | Event | Impact |
|---|---|---|---|
| 2015 | 28 Jun | Debt is “not payable,” says Governor Garcia Padilla | Marked a turning point in the debt crisis, as the commonwealth acknowledged it could not repay roughly USD 72bn without creditor concessions. |
| 3 Aug | First default recorded with partial PFC bond payment | The USD 628,000 partial payment, tied to a lack of appropriated funds, showed liquidity constraints had begun translating into missed debt service. | |
| 2016 | 30 Jun | PROMESA signed into law by Obama | Created the fiscal oversight board and federal framework that would steer Puerto Rico’s finances, budgets and debt restructuring. |
| 1 Jul | GO bond default recorded | Commonwealth misses USD 779m payment, confirming general obligation debt was no longer protected. | |
| 31 Aug | Obama appoints FOMB’s first members | Put PROMESA’s seven-member board in place, giving it a central role in Puerto Rico’s finances, restructuring and recovery effort. | |
| 2017 | 2 Jan | Governor Rosselló takes office | Brought in a new administration as PROMESA implementation began, with Rosselló quickly naming economic leadership for GDB and fiscal policy. |
| 23 Mar | Jaresko appointed FOMB executive director | FOMB’s top executive was appointed to oversee Puerto Rico’s restructuring. She had previously led Ukraine’s finance ministry through debt talks. | |
| 3 May | Title III petition certified by FOMB | Largest municipal bankruptcy-style case in US history began. The filing protected the commonwealth from lawsuits after PROMESA’s stay expired. | |
| 3 Jul | PREPA Title III restructuring petition filed | Brought the island’s power utility into Title III. The board said talks with creditors would continue despite the filing. | |
| 21 Sep | Disaster declaration approved after Hurricane Maria | Maria devastated the island and complicated the restructuring, adding recovery costs, federal aid questions and economic uncertainty to an already strained fiscal outlook. | |
| 2018 | 20 Jun | PREPA privatization law signed | Opened the door to private operators in Puerto Rico’s power system. |
| 20 Jun | GDB restructuring deal announced under Title VI | Closed the first debt restructuring under PROMESA through Title VI procedures. Puerto Rico municipalities received about USD 55m in debt-service savings. | |
| 2019 | 4 Feb | COFINA plan of adjustment confirmed | Became the first Title III entity with a confirmed plan, reducing COFINA debt by 32%. The restructuring saved Puerto Rico USD 17.5bn. |
| 2 Aug | Rosselló resigns after group chat scandal | The resignation created a political crisis during restructuring negotiations, disrupting the government’s leadership. | |
| 7 Aug | Wanda Vázquez becomes governor | Vazquez took office after Rossello’s resignation, adding another government transition. | |
| 2020 | 1 Jun | US Supreme Court upholds FOMB appointments | FOMB authority was preserved. It ended uncertainty over board actions that could have disrupted completed restructurings and pending Title III cases. |
| 2021 | 2 Jan | Pierluisi sworn in as governor | New administration began with a fiscal emergency order as COVID-19 pressures remained, tightening spending and hiring controls from day one. |
| 1 Jun | LUMA takes over PREPA transmission and distribution | Private operator LUMA took over operations for PREPA’s transmission and distribution system. | |
| 2022 | 18 Jan | Commonwealth plan of adjustment confirmed by Title III judge | Central government restructuring approved, reducing debt by 80% and saving more than USD 50bn in debt-service payments. Effective date remained pending. |
| 20 Jan | PRRADA amends PROMESA to require professional conflict disclosures | Required restructuring professionals to disclose debtor, creditor and FOMB connections before compensation, adding conflict-of-interest safeguards to PROMESA cases. | |
| 15 Mar | Commonwealth plan of adjustment becomes effective | The effective date cut Puerto Rico’s central-government debt and ended the commonwealth’s Title III case, though PREPA and other disputes remained unresolved. | |
| 1 Apr | Jaresko resigns as FOMB executive director | Her resignation marked a leadership change at the board after the commonwealth’s government exit from Title III. | |
| 12 Oct | HTA plan of adjustment confirmed under Title III | Highways and Transportation Authority plan confirmed under Title III, setting creditor recoveries and reducing another major authority’s debt burden. | |
| 6 Dec | HTA plan of adjustment becomes effective | Debt reduced by more than 80%. Annual debt service fell to USD 90m from USD 294m, generating more than USD 3bn in savings. | |
| 2023 | 1 Jan | Mujica appointed FOMB executive director | Former New York budget director became the FOMB’s second executive director. |
| 1 Jul | Genera assumes PREPA generation operations | Genera became the new operator of PREPA’s power generation fleet. | |
| 2024 | 10 Jun | FY22 audited financial statements published | Latest published commonwealth audit showed a USD 3.3bn general fund deficit. |
| 12 Jun | First Circuit rules PREPA bondholders have USD 8.5bn secured claim | Reversed a lower-court ruling that limited bondholders to a USD 2.4bn unsecured claim, finding the bonds secured by utility revenues. | |
| 2025 | 2 Jan | Jenniffer Gonzalez becomes governor | González took office as governor after serving for years as the island’s resident commissioner in Washington. |
| 5 Aug | Trump fires FOMB members | Five removals reopened questions over FOMB independence. FOMB said it would continue working under its PROMESA mandate. | |
| 3 Oct | Court reinstates three ousted FOMB members | González, Biggs and Rosa were allowed to keep serving while their challenge proceeds. The ruling left FOMB with four seated members, one short of the five needed for key actions. | |
| 10 Dec | FOMB sees credit-market access by FY29 | Market access tied to timely audits and a possible FY26 start to PROMESA’s four-year balanced-budget clock. | |
| 2026 | 16 Mar | Judge Swain denies bondholders’ USD 3.7bn administrative expense claim | Major obstacle to PREPA’s exit plan removed. The rejected claim could have required a USD 3.7bn payment before bankruptcy exit. |
| 30 Apr | PREPA mediation extended through 31 Oct | Mediation extended six more months, with monthly status reports required as PREPA continued without a final restructuring deal. | |
| 21 May | Mujica says PREPA bankruptcy is unlikely to be resolved this year | Kept PREPA as the central unfinished restructuring, signaling that full closure of Puerto Rico’s PROMESA process remained out of reach. | |
| 8 Jun | PREPA bondholders appeal bankruptcy stay ruling | Bondholders appealed to the First Circuit a ruling that limited stay relief to prosecuting their accounting counterclaim. |
This timeline is part of a Debtwire special report series marking the 10-year anniversary of PROMESA’s enactment.
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