SAN JUAN, Puerto Rico (AP) — Officials announced a settlement late Sunday with bondholders that would reduce Puerto Rico’s public debt by 70%, but the U.S. territory’s governor swiftly rejected it, saying it puts too heavy a burden on the island’s retirees.

The settlement is the biggest one to date since Puerto Rico’s government announced in 2015 that it was unable to pay its more than $70 billion public debt load and filed for the largest U.S. municipal bankruptcy in May 2017.

The newest deal reached between a federal control board overseeing Puerto Rico’s finances and several groups of bondholders would reduce the island’s bond debt from some $35 billion to roughly $11 billion.

However, Gov. Wanda Vázquez rejected the settlement and noted it still requires legislative approval.

“If the bondholders receive better treatment in the bankruptcy process, so should retirees,” she said.

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