They expect PR to be out of bankruptcy by 2020.

The Financial Oversight and Management Board for Puerto Rico (FOMB) announced today that it reached an agreement with certain bondholders of the Commonwealth of Puerto Rico on the framework for a plan of adjustment to resolve $35 billion worth of debt and non-debt claims against the Commonwealth. The agreement will reduce the amount of Commonwealth-related bonds outstanding to less than $12 billion, a reduction of more than 60%.

The Commonwealth’s debt service, including principal and interest over the next 30 years, would be cut by about half, to $21 billion from $43 billion.The Oversight Board expects to file a plan of adjustment for the Commonwealth in the Title III court within the next 30 days and hopes to emerge from Title III in early 2020.The Government of Puerto Rico did not sign on to the Agreement and said in a statement that they stand by their position to not support any negotiation that entails a reduction in pension payments and that they would follow through with that by not enacting any necessary legislation.This support agreement with certain Commonwealth bondholders, together with the Oversight Board’s agreements with the Official Committee of Retired Employees (COR) to resolve the $55 billion in pension benefit claims of the Commonwealth of Puerto Rico’s retirees announced last week and with unions regarding collective bargaining and retirement benefit agreements, provide Puerto Rico with a path to put this restructuring behind it and emerge from the process laid out under Title III of PROMESA.’The support agreement with creditors and the agreement with COR and the unions are milestones for Puerto Rico on the path towards a future with sustainable debt payments, secure pensions, and fiscal stability,’ said the Oversight Board’s Chairman Jose Carrión, III. ‘A Commonwealth plan of adjustment will provide investors with confidence that Puerto Rico has turned the corner after its financial crisis. The people of Puerto Rico will finally be able to live without the uncertainty of unsustainable government debt that so profoundly affected the Commonwealth’s ability to attract investors, create jobs and economic growth.’The agreement provides a greater than 60% average haircut for all $35 billion claims against the Commonwealth, a 36% haircut for holders of valid Puerto Rico general obligation bonds, and a 27% haircut for holders of valid Public Building Authority bonds guaranteed by the Commonwealth.This agreement with bondholders, along with the restructuring agreement for the Puerto Rico Sales Tax Financing Corporation (COFINA) approved in February, reduces the Commonwealth’s maximum annual debt service payable in any future year by more than 70%, from $4.2 billion annually to below $1.5 billion a year.’We have fought hard for the interests of the people of Puerto Rico and we are glad to have reached a consensual agreement with creditors that lowers Puerto Rico’s total debt burden and its annual debt payments significantly,’ said the Oversight Board’s Executive Director Natalie Jaresko. ‘These were tough negotiations and we are confident we reached the best deal possible for Puerto Rico to move on from decades of incurring debt we could not afford.’Find a summary of the terms of the

Plan Support Agreement here.[naviga:img embed-content-articleid=’1086803512′ embed-content-groupid=’593030471′ embed-content-id=’1086803512′ embed-content-imgalign=’none’ embed-content-index=’0′ embed-content-location=’input_story-body’ embed-content-type=’FILE’ height=’240px’ src=’/amino-v1-theme/images/placeholder/placeholder-16×9.jpg’ style=’width:100%;’ width=’360px’]And the full

Plan Support Agreement here.[naviga:img embed-content-articleid=’1086803527′ embed-content-groupid=’593030471′ embed-content-id=’1086803527′ embed-content-imgalign=’none’ embed-content-index=’0′ embed-content-location=’input_story-body’ embed-content-type=’FILE’ height=’240px’ src=’/amino-v1-theme/images/placeholder/placeholder-16×9.jpg’ style=’width:100%;’ width=’360px’]