Following the scandal of UBS selling bad bonds throughout Puerto Rico, it now appears an overall government default on bond obligations is underway. Read more here.
Currently, the U.S. territory owes $73 billion to its creditors. To make matters worse, the Puerto Rican treasury is in the red to the tune of $370 million, and has already spent another $400 million borrowed in order to keep its government in operation. Puerto Rico also faces a $355 million revenue shortfall for the current fiscal year. The Government Development Bank, which issues bonds, is expected to be insolvent before the New Year.