Puerto Rico's top officials announced a plan to reform its economy while moving towards "consensual adjustment" of part of the island's debt during a meeting with creditors at Citibank's offices in New York on Monday. "As evidenced by examples elsewhere in the world, a contentious, drawn-out adjustment process will not be in the best interests of the Commonwealth or of its creditors," Puerto Rico Government Development Bank chief Melba Acosta told investors. Despite recent reforms, the territory is still facing significant challenges, Acosta said - including declining investment in the island, falling housing prices, high labor costs, low labor participation rates and declining population. The meeting came after Puerto Rico Governor Alejandro Garcia Padilla announced that the island's $72 billion debt is "not payable" on June 29, saying he wants to restructure debt and postpone bond payments.
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