Puerto Rico Debt Crisis

The Puerto Rico debt crisis stems from the island accumulating over $70 billion in unpaid debt from bonds, loans, and pension obligations, largely due to years of economic decline, heavy borrowing, and budget mismanagement. When revenues fell short, the government struggled to meet its financial commitments, leading to a default on payments. This crisis constrained economic growth, limited access to credit, and prompted federal intervention, including a managed bankruptcy process through the U.S. territory's oversight board, to restructure and restore fiscal stability.