Washington DC - Puerto Rico's Government Development Bank is meeting with investors in New York to share new details around a bond exchange first proposed by the indebted island last year. The proposal is not being made public but sources say it will include a "superbond" that investors could purchase in exchange for existing debt. The plan takes into account that the US Territory's budget gap is $2 billion larger than expected. Puerto Rico owes $72 billion in total debt.
"Without bankruptcy protection, the only relief available to Puerto Rico now is through direct negotiations," stated Eric LeCompte, Executive Director of the religious development group Jubilee USA. "The debt needs to be sustainable and we can't support any solutions at the expense of pensions or social services."