<P> Initially, the oversight board created under PROMESA called for Puerto Rico's governor Ricardo Rosselló to deliver a fiscal turnaround plan by January 28 . Just before that deadline, the control board gave the Commonwealth government until February 28 to present a fiscal plan (including negotiations with creditors for restructuring debt) to solve the problems . A moratorium on lawsuits by debtors was extended to May 31 . It is essential for Puerto Rico to reach restructuring deals to avoid a bankruptcy - like process under PROMESA . An internal survey conducted by the Puerto Rican Economists Association revealed that the majority of Puerto Rican economists reject the policy recommendations of the Board and the Rosselló government, with more than 80% of economists arguing in favor of auditing the debt . </P> <P> In early August 2017, the island's financial oversight board (created by PROMESA) planned to institute two days off without pay per month for government employees, down from the original plan of four days per month; the latter had been expected to achieve $218 million in savings . Governor Rossello rejected this plan as unjustified and unnecessary . Pension reforms were also discussed including a proposal for a 10% reduction in benefits to begin addressing the $50 billion in unfunded pension liabilities . </P> <P> Puerto Rico has an operating budget of about U.S. $9.8 billion with expenses at about $10.4 billion, creating a structural deficit of $775 million (about 7.9% of the budget). The practice of approving budgets with a structural deficit has been done for 18 consecutive years starting in 2000 . Throughout those years, including present time, all budgets contemplated issuing bonds to cover these projected deficits rather than making structural adjustments . This practice increased Puerto Rico's cumulative debt, as the government had already been issuing bonds to balance its actual budget for four decades since 1973 . </P> <P> Projected deficits added substantial burdens to an already indebted nation which accrued a public debt of $71 B or about 70% of Puerto Rico's gross domestic product . This sparked an ongoing government - debt crisis after Puerto Rico's general obligation bonds were downgraded to speculative non-investment grade ("junk status") by three credit rating agencies . In terms of financial control, almost 9.6%--or about $1.5 billion--of Puerto Rico's central government budget expenses for FY2014 is expected to be spent on debt service . Harsher budget cuts are expected as Puerto Rico must now repay larger chunks of debts in the following years . </P>

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