If the Oversight Board had accepted the economic terms of the joint proposal of certain bondholders of the Puerto Rico Sales Tax Financing Corporation (COFINA) and the organized group of bondholders of General Obligations (GOs), Puerto Rico would have reached an agreement with several of its most important creditors. But this would have been done without a budget that could make it feasible, because the proposal does not offer a significant debt cut, while local bondholders would be left with the worst part of the transaction.