Seeking to appease creditors, Puerto Rico sweetened its proposal to revamp its debt load as policymakers are scrambling to strike an agreement before its scheduled payments.
By swapping its outstanding paper into two new types of bonds, the US territory plans to slash $49.3 billion of its $70 billion debt to around $32.6 billion-$37.4 billion.
The new plan would escalate the Caribbean island’s general obligation bonds by 74 cents, previously 72 cents, on the dollar.
The proposal emerges following Governor Alejandro Garcia Padilla legislated an emergency measure permitting him to declare a moratorium on debt payments.
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