Puerto Rico’s federal supervisors are making a final push to write down $18 billion in sales-tax bonds under a settlement that would mark their largest renegotiation yet of the U.S. territory’s crushing debts. The restructuring proposal covers the revenue bonds known as Cofinas, which make up roughly 40% of Puerto Rico’s core government debt. First issued in 2007, the Cofina bonds are backed by sales taxes that provided investors a secure source of repayment and lowered Puerto Rico’s borrowing costs.

Source: Wall Street Journal January 19, 2019 14:05 UTC