The adjustment plan for the largest municipal bankruptcy in the United States, which would be essential to restore Puerto Rico's fiscal discipline, rests on economy still stalled that condemns children to poverty. (GFR Media)

The Oversight Board would file today before U.S. District Judge Laura Taylor Swain, the central government's debt adjustment plan, a proposal to modify over $38 billion in obligations to put an end to the budget crisis Puerto Rico has been experiencing for almost two decades.Among other issues and according to reports by this newspaper, the plan proposes to reduce the amount the government now commits to paying bondholders to almost a third, including the debt of the Sales Tax Financing Corporation (Cofina) and the Retirement Systems Administration (ASR, Spanish acronym). The cut in state debt is based on the agreement between the Board and the Lawful Constitutional Debt Coalition (LCDC), which establishes a recovery -in the aggregate - of 64 percent for General Obligations (GOs) bondholders and the Public Buildings Authority (PBA).


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