SAN JUAN (AP) — Puerto Rico's fragile economy is facing an uncertain future after the island's governor rejected a settlement announced late Sunday with bondholders that would reduce the U.S. territory's public debt by 70%.
The settlement is the biggest one to date since the island's government announced in 2015 that it was unable to pay its more than $70 billion public debt load and filed for the largest U.S. municipal bankruptcy in May 2017.
It's unclear whether the deal will become final. Gov. Wanda Vázquez said it places too heavy a burden on the island's retirees and noted that it still requires legislative approval.