World Economy

Puerto Rico Convinces Creditors

Puerto Rico Convinces CreditorsPuerto Rico Convinces Creditors

Puerto Rico’s imminent fiscal reform plan will aim to persuade bondholders to restructure debt by showing the government is willing to share the burden, Reuters reported. But some of the plan’s expected reforms, such as cuts to teacher pensions and University of Puerto Rico subsidies, may be too politically unfeasible to coax bondholders to the table, according to analysts and experts on the island. The US commonwealth’s government is due to develop a debt adjustment plan by Aug. 30, engineered by a task force appointed by Governor Alejandro Garcia Padilla, who in June shocked investors by calling the island’s $72 billion debt load “unpayable.”