SAN JUAN, Puerto Rico (AP) — Puerto Rico is bracing for widespread spending cuts after the government released a fiscal reform plan on Wednesday that would reduce much of the island's $72 billion public debt and calls for restructuring the remainder at the expense of bondholders.

The five-year plan proposes that the government cut subsidies to municipalities and the University of Puerto Rico, offer early retirement and reorganize or merge state agencies. It also calls on the government to extend until 2021 legislation that would freeze new hires, salary increases and collective bargaining agreements.

The plan addresses $47 billion of the island's public debt and requires approval by Puerto Rico's lawmakers.

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