Puerto Rico holding call with creditors, to tweak restructuring plan: official

Reuters News
Posted: Jan 15, 2016 2:56 PM

NEW YORK (Reuters) - Puerto Rico is talking to creditors on Friday to discuss adjusting its long-anticipated restructuring plan which was unveiled in September, its Government Development Bank president Melba Acosta said in a statement.

Puerto Rico officials in September proposed cuts to teacher pensions, a new financial control board and restructuring $18 billion of debt due in the coming five years, as part of a long-anticipated plan unveiled to pull the island out of a wrenching fiscal crisis. The plan was called the Puerto Rico Fiscal and Economic Growth Plan (FEGP).

"The FEGP is being revised given the recent reduction in revenue projections already reported by PR Treasury," said Acosta in a statement, adding that it would be extended from five years to ten. A conference call with creditors is taking place on Friday, she said.

"Given this, the restructuring proposal is being adjusted accordingly," she said.

(Reporting by Megan Davies)