Insights > Financial Advisor to the Government of Puerto Rico

Financial Advisor to the Government of Puerto Rico

Challenge

The Government of Puerto Rico was suffering from a ten-year declining economy and facing a broad spectrum of fiscal challenges, including over $72 billion of municipal bond debt and over $50 billion of estimated unfunded pensions. It had minimal access to capital markets, poor financial reporting, limited visibility into liquidity, and insufficient budgeting practices.

The liquidity planning, management, and forecasting processes that Conway MacKenzie, part of Riveron, instituted has helped Puerto Rico navigate and maintain services for its citizens through the devastating impacts of two major hurricanes, weeks of seismic activity, and the ongoing COVID-19 crisis.

How we helped

Conway MacKenzie was engaged by the Government to help with comprehensive liquidity management, forecasting and reporting across the General Fund, major public corporations, and Federal Fund programs. Our role evolved to include assisting with the development of the 30-year fiscal plan forecast that serves as the basis for debt-restructuring negotiations and for the annual legislated budgets. Over five years, we have become a consistent purveyor for reliable financial, liquidity, and operational information so that all stakeholders can make informed decisions as Puerto Rico undergoes an unprecedented restructuring of over $120 billion in liabilities.

Results

With the assistance of Conway MacKenzie, the Government of Puerto Rico’s financial disclosure programs are almost completely compliant with requirements instituted by the congressionally appointed oversight board that was instilled to oversee Puerto Rico’s restructuring efforts. Stakeholders now have visibility into nearly all of the government’s cash flow activity and an increasing rage of financial and operational reports. The liquidity planning, management, and forecasting processes that Conway MacKenzie instituted has helped Puerto Rico navigate and maintain services for its citizens through the devastating impacts of two major hurricanes, weeks of seismic activity, and the ongoing COVID-19 crisis.

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