It is the most indebted territory or state per capita in the United States and now Puerto Rica is in default.
The government has confirmed it failed to make a debt payment of 50 million dollars – around 35 million euros – due on bonds as it did not have the funds available.
The ratings agency Moody’s said it viewed the development as a default.
The US commonwealth paid only 628,000 dollars of a 58 million dollar payment due on its Public Finance Corp bonds.
In a statement the Government Bank President Melba Acosta Febo said it was because the legislature did not appropriate sufficient funds.