Puerto Rico warns of 11 percent GDP drop in new fiscal plan

Puerto Rico warns of 11 percent GDP drop in new fiscal plan
In this Friday, Jan. 19, 2018 photo, shows one of multiple properties located in the Esperanza sector that are currently for sale, in Vieques, Puerto Rico. Hundreds of thousands of Puerto Ricans face losing their homes upon the expiration of a three-month moratorium on mortgage payments that banks offered after Hurricane Maria devastated the island (AP Photo/Carlos Giusti)

SAN JUAN, Puerto Rico (AP) — Puerto Rico’s governor has submitted a revised fiscal plan that estimates that the U.S. Caribbean territory’s economy will shrink by 11 percent and its population drop by nearly 8 percent next year.

The proposal released early Thursday doesn’t set aside any money to pay creditors in the next five years as the island struggles to restructure a portion of its billion public debt.

The plan also assumes Puerto Rico will receive billion in federal funds to help it recover from Hurricane Maria and another billion from private insurance companies.

Gov. Ricardo Rossello said he aims to reduce the island’s structural deficit from .6 billion to million in the next five years.

A federal control board overseeing Puerto Rico’s finances has to approve of the plan.