Puerto Rico will take the next step in efforts to resolve its fiscal crisis on Jan. 29 by presenting investors with an offer to swap existing bonds for two new types of securities.

If creditors were to accept the offer, the U.S. territory would gain much-needed time to make fiscal adjustments to reinvigorate its sputtering economy, The Wall Street Journal reported. One of the new bonds would pay a fixed interest of percent. The value of the other bond would be determined by future indicators of the commonwealth's fiscal stability.

The Puerto Rican government's new offer is part of ongoing negotiations over how to settle the roughly $9 billion of debt owed by the island territory's power company, The New York Times recalled. After discussions initially broke down last week, the talks resumed on Jan. 27, the newspaper noted.

Legislature Gets Extra Time for Restructuring

Both sides have already agreed to give Puerto Rico's legislature until Feb. 16 to enact a restructuring plan for the Puerto Rico Electric and Power Authority (PREPA), after lawmakers failed to meet an earlier deadline on Jan. 22 to sanction the statute.

Despite that initial failure, Stephen Spencer, a spokesman for the creditors, known as the Bondholders Group, voiced optimism about legislators' commitment to get the situation under control.

Senate president Eduardo Bhatia made it "unequivocally clear that they want to get this deal done and that the additional 25 days we are extending beyond the original deadline is sufficient for the legislation to be passed," Spencer noted.

Governor Seeks to Reassure With Interim Measures

In the meantime, Puerto Rico Gov. Alejandro García Padilla sought to assure creditors by announcing that his government had taken measures to reduce expenses and increase revenue, The Wall Street Journal reported.

"I have instructed our team and our advisers to present to our creditors' advisers tomorrow the commonwealth's proposal for a voluntary debt exchange," García Padilla said. "It is our every intent to protect the integrity of the process, and as such, we do not plan to negotiate the terms of our proposal publicly."