US

Puerto Rico unveils new proposal to restructure debt

FILE - In this Wednesday, July 29, file 2015 photo, the Puerto Rican flag flies in front of Puerto Rico’s Capitol as in San Juan, Puerto Rico. On Monday, April 11, 2016, Puerto Rico released a new proposal to restructure part of its $70 billion debt to buy time to implement a fiscal growth plan as multimillion-dollar payments loom for a U.S. territory facing dwindling cash reserves. (AP Photo/Ricardo Arduengo, File)

FILE - In this Wednesday, July 29, file 2015 photo, the Puerto Rican flag flies in front of Puerto Rico’s Capitol as in San Juan, Puerto Rico. On Monday, April 11, 2016, Puerto Rico released a new proposal to restructure part of its $70 billion debt to buy time to implement a fiscal growth plan as multimillion-dollar payments loom for a U.S. territory facing dwindling cash reserves. (AP Photo/Ricardo Arduengo, File)  (The Associated Press)

Puerto Rico has released a new proposal to restructure part of its $70 billion debt to buy time and implement a fiscal growth plan.

The plan released Monday calls for issuing up to $28 billion in new bonds that would allow creditors to be paid regardless of future economic growth rates. The government says the deal would allow Puerto Rico to cut $12 billion to $16 billion from its debt load.

Investors' groups have proposed tougher terms. They did not immediately return a message for comment on the new plan, which could mean a loss for some.

Officials say the deal would reduce the debt service-to-revenue ratio on tax-supported debt from 36 percent to 15 percent.

The plan comes as Puerto Rico urges U.S. Congress to approve a debt-restructuring mechanism.