NEW YORK, Jan 26 (Reuters) - Puerto Rico’s advisors are expected to meet with creditors on Friday as the island continues to try and negotiate a debt restructuring deal, according to a source familiar with the situation.
Facing $70 billion in debt and a 45 percent poverty rate, Puerto Rico is trying to solve an economic crisis before it hits substantial debt payments in May and July. It has defaulted on some of its debt and is trying to persuade creditors to take concessions.
Debt restructuring talks, which have slowed in recent weeks, have been expected to pick back up this month. Puerto Rican leaders have said they will propose a universal exchange offer, or a so-called superbond, to many sets of stakeholders. Creditors have also been discussing among themselves possible alternatives, several sources said recently.
Melba Acosta, president of the GDB, said earlier this month that the island planned to sit down with creditors soon and put forward a comprehensive restructuring proposal.
The meetings will take place individually at the offices of the commonwealth’s legal firm Cleary Gottlieb Steen & Hamilton, the source said.
The Wall Street Journal earlier reported the scheduling of the talks. A spokeswoman for Puerto Rico did not immediately respond to a request for comment. (Reporting by Megan Davies,; additional reporting by Nick Brown; Editing by David Gregorio)