What caused the Puerto Rican $118 billion debt crisis?

A sad story. Puerto Rico has always been less prosperous than the mainland USA. Liberals might point to a history of being a colony and costs that are necessarily high on account of being a small tropical island. read more

In March, the Governor proposed a new deal to restructure debt of the premier utility company, Puerto Rico Electric Power Authority (PREPA), which constitutes $9 billion, or nearly 13% of the total bond debt outstanding. read more

These events, along with a series of governmental financial deficits and a recession, have led to Puerto Rico's current debt crisis. Causes. In 1917 the United States Congress authorized the government of Puerto Rico to issue triple tax-exempt municipal bonds. read more