Deal reached over Puerto Rico sales tax bonds

Aug 8 (Reuters) - Puerto Rico has reached a deal with bondholders and insurers of debt issued by its bankrupt sales taxing authority, COFINA, the U.S. territory's governor and federal oversight board announced on Wednesday.

The agreement would reduce COFINA's debt by more than 32 percent and result in about $17.5 billion in debt service savings, officials said in statements. (Reporting By Karen Pierog in Chicago; Editing by Daniel Bases and Tom Brown)