Puerto Rico delays debt adjsutment plan to Sept. 8, citing time spent on contingency disaster planning by the government in the run-up to Tropical Storm Erika. Roselle Chen reports.
TV AND WEB RESTRICTIONS~**NONE*~ Puerto Rico was originally scheduled to complete its fiscal reform plan on Sunday. But the government's pushing the date to as late as September 8, saying it's been busy dealing with contingency disaster planning for Tropical Storm Erika. The storm hit the eastern part of the island last week, dumping much-needed rain. The debt adjustment plan is designed to outline government reforms that could help tackle Puerto Rico's $72 billion debt. Puerto Rico Gov. Alejandro Garcia Padilla shocked investors in June by calling the debt "unpayable" and sought concessions from bondholders. A draft of the plan proposed $1 billion in spending cuts, including teacher pensions and university subsidies. But getting bondholders to agree to concessions could be an uphill battle. That's because the proposed spending reforms aren't very politically palatable.... 14 months ahead of a gubernatorial election.