Puerto Rico’s financial crisis

Puerto Rico's financial crisis stems from a combination of high public debt, a struggling economy, and the impacts of policies and natural disasters. For years, the island borrowed heavily to finance public services, leading to debt exceeding $70 billion. Its economy shrank due to factors like the 2008 recession and an exodus of residents seeking better opportunities. In 2017, Hurricane Maria devastated infrastructure, worsening the situation. As a result, Puerto Rico filed for bankruptcy under a special U.S. law, seeking to restructure its debt while managing economic challenges and recovery efforts.