Puerto Rico lawmakers plan to file legislation next week that allows the commonwealth to sell new bonds to replace existing debt, a necessary step to help finalize the island’s record bankruptcy.

The commonwealth’s House of Representatives is set to file the bill as soon as Monday, Rafael “Tatito” Hernandez, speaker of the House, said in a telephone interview. The legislature plans to pass a debt-restructuring bill by Oct. 4 for Governor Pedro Pierluisi to consider, Hernandez said.

“We need to fix this and then focus on economic development and job growth,” Hernandez said. “This is a great step in the right direction for the future of Puerto Rico.”

Getting Puerto Rico lawmakers’ approval for a new bond sale to restructure $22 billion of general obligations and commonwealth-guaranteed debt is a key step before U.S. District Court Judge Laura Taylor Swain begins conformation hearings in early November on Puerto Rico’s debt adjustment plan.

To get enough votes to pass the House, the legislation will include issues beyond cutting Puerto Rico’s obligations, including programs for municipalities and retirees, Hernandez said. Lawmakers will be working on the legislation as bondholders wrap up voting on the debt adjustment plan that Puerto Rico’s financial oversight board submitted to the court earlier this year.

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