Tags: Puerto Rico | Debt | Restructuring | fiscal growth

Puerto Rico Unveils New Debt Restructuring Proposal

Puerto Rico Unveils New Debt Restructuring Proposal

Monday, 11 April 2016 09:14 AM

Puerto Rico has released a new proposal to restructure part of its $70 billion debt to buy time and implement a fiscal growth plan.

The plan released Monday calls for issuing up to $28 billion in new bonds that would allow creditors to be paid regardless of future economic growth rates. The government says the deal would allow Puerto Rico to cut $12 billion to $16 billion from its debt load.

Investors' groups have proposed tougher terms. They did not immediately return a message for comment on the new plan, which could mean a loss for some.

Officials say the deal would reduce the debt service-to-revenue ratio on tax-supported debt from 36 percent to 15 percent.

The plan comes as Puerto Rico urges U.S. Congress to approve a debt-restructuring mechanism.

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Puerto Rico on Monday unveiled a new debt restructuring proposal with more modest debt cuts, offering general obligation holders about 74 cents on the dollar with other creditor classes getting less.The plan would reduce a $49 billion chunk of the island's debt to between...
Puerto Rico, Debt, Restructuring, fiscal growth
Monday, 11 April 2016 09:14 AM
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