Puerto Rico, reeling from a debt crisis lasting more than a year, reached an agreement Monday that should set the stage for meaningful talks with its creditors, who hold more than $70 billion of defaulted debt.
Under the agreement, new taxes will be imposed but public workers will be spared from furloughs for now, a measure that had been on the table.
The island’s federally appointed oversight board voted unanimously to approve an amended plan, submitted by Gov. Ricardo Rosselló, for restoring fiscal solvency over the next 10 years. Approving the governor’s plan spared the seven-member board from having to impose an austerity plan that probably would have caused an outcry on the island.
“It’s essentially the same plan I submitted, except for the economic baseline numbers,” Mr. Rosselló said in a telephone interview after the meeting. “The board approved our plan, conditioned on us meeting some milestones.”
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Puerto Rico, Mired in Debt, Has a New Rescue Plan
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