Deal reached to cut bankrupt Puerto Rico's debt by $24 billion

(Reuters) – Puerto Rico would shed about $24 billion of debt and move closer to exiting bankruptcy under an agreement with bondholders announced on Sunday by the U.S. commonwealth’s federally-created financial oversight board.

The deal cuts $35 billion of bonds and claims to about $11 billion and increases the ranks of general obligation (GO) and Public Buildings Authority bondholders that signed onto a plan to restructure core government debt and more than $50 billion in pension obligations that the board filed in U.S. District Court in September.