Puerto Rico: Facilitate an Exchange Offer, Now
Jacoby asks what can the Executive Branch do to help out Puerto Rico. The most practical thing it could do, right now, is to facilitate an exchange offer. Whether the Treasury itself can act as a mediator, or at least facilitate mediation by some outsider, this seems like the quickest way to a real solution to the near-term problems the Commonwealth faces. Treasury might also act as an overseer of reforms and a (comparatively) neutral voice with regard to Puerto Rico’s financial information.
Yes, it would be great to resolve the Commonwealth’s awkward legal status – and maybe, just maybe the Supreme Court will do that this term. Or at least start the process. But long before that can happen, Puerto Rico is facing potential defaults. Those need to be addressed right now. If the Executive Branch can facilitate the negotiation of a comprehensive exchange offer, the Commonwealth will gain time to solve those bigger, long term issues.