Puerto Rico Governor Ricardo Rossello faces a tough balancing act as he begins talks with creditors in a bid to reduce the territory’s $70 billion debt, Bloomberg News reported on Friday. The prospect of billions of dollars of losses — on debt that buyers were assured couldn’t even be written off in bankruptcy — has set off a lobbying push by groups including Bonistas del Patio ("Backyard Bondholders" in English), which is trying to shelter Puerto Ricans from deep investment losses they say would deal another blow to the island’s already shrinking economy. Puerto Ricans were big lenders to their government, which borrowed year after year to pay bills as officials sought to avert deep spending cuts. While speculative investment funds became major bondholders as the government’s credit rating was dropped to junk, at least $6 billion was still held by island residents as of last year, according to one government estimate. That’s injected a local political wrinkle into already complex negotiations as Puerto Rico deals with holders of more than a dozen classes of debt backed by various revenue streams and legal protections. The scale of the crisis — and the threat of protracted court fights among creditors — led the U.S. last year to install a federal oversight board with broad powers to review Puerto Rico’s budget and any debt-cutting deal. While former Governor Alejandro García Padilla proposed a restructuring that would keep some interest payments flowing to island residents, it’s unclear if Rossello will follow a similar approach.