Arab Today, arab today puerto rico unveils austerity reform plan to slash debt
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

Puerto Rico unveils austerity, reform plan to slash debt

Arab Today, arab today

Arab Today, arab today Puerto Rico unveils austerity, reform plan to slash debt

Governor Alejandro Garca Padilla
San Juan - AFP

Puerto Rico laid out a new plan of spending cuts and revenue increases Wednesday aimed at slashing its $72 billion debt burden.

But the plan will still leave the US Caribbean island territory with a $14 billion financial shortfall that could require creditors lenders to take a writedown on their bonds.

"The massive public debt of Puerto Rico is a barrier to growth," said Governor Alejandro Garcia Padilla.

"It is time for the creditors to come to the table and share the sacrifice."

The plan, by the governor's Working Group for the Fiscal and Economic Recovery of Puerto Rico, was aimed at convincing creditors to enter new talks on resolving the financial crisis, which has led to the island being labelled "America's Greece".

It detailed a package of labor and tax reforms to encourage hiring and investment, a plan to implement a value added tax to increase tax collections, and cuts to government spending and subsidies.

In all, that could amount to trimming $11.9 billion from the current $27.8 billion funding shortfall through 2020, the plan said.

If the government is successful in returning the island to economic growth, another $1.9 billion can be trimmed from the shortfall.

But that will still leave the government in need of some $14 billion to make good on debt and other commitments.

The plan says that requires a "consensual compromise" by creditors "in order to avoid a disorderly default" that would "further destabilize the Commonwealth’s economy and finances."

One government agency already missed a small bond payment last month and the plan warns that the government's financial resources are running very thin.

But US law does not allow the territory's government to declare bankruptcy, as some US cities have done, to force negotiations with creditors.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today puerto rico unveils austerity reform plan to slash debt Arab Today, arab today puerto rico unveils austerity reform plan to slash debt

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today puerto rico unveils austerity reform plan to slash debt Arab Today, arab today puerto rico unveils austerity reform plan to slash debt

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday