WASHINGTON, Feb 5 (Reuters) - Puerto Rico, struggling to restructure its mountain of debt and already paying some but not all of its creditors, will run out of fiscal emergency measures by June, the Government Development Bank president said on Friday.
“By June where the big payments are coming, the big GO payment ... by June there are no more, literally run out of tricks, we run out of emergency measures. We really are at the end,” Melba Acosta Febo, president of the GDB, said in a briefing to U.S. Congressional staff members.
“That is why it is so important that we try to reach an agreement with our creditors to restructure our debt before we get to that point,” she said.
With a 45 percent poverty rate and exodus of people to the United States, 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.
Puerto Rico on Monday asked its creditors to take a huge “haircut” that would slash its total outstanding debt by about $23 billion in an opening salvo to resolve the crippling debt crisis. (Reporting By Clarece Polke in Washington, Daniel Bases in New York, Nick Brown in San Juan; Editing by Meredith Mazzilli)