Ironically, its name means ‘wealthy port’
However, these days Puerto Rico is ready to declare bankruptcy due to its public debt that reached no less than $73 million dollar.
According to several financial analysts, this is the worst case of insolvency in the history of the United States of America.
The American island has a population of 3. 5 million and its government became desperate to find protection from some laws.
Most Puerto Ricans invested the money loaned from different national banks in bonds but the government can no longer pay up the rates at the due date.
In order to help them, a federal committee was designated to come up with an emergency plan meant to protect Puerto Rico from another financial disaster.
However, the situation is complicated and similar procedures were tested in the past without much success.
Unlike a case of insolvency which involves a company or a region, the law is extremely complicated when a state ends up in this fragile situation.
Puerto Rico’s financial crisis is similar to Greece’s epic situation when the European state required several international agreements in order to get back on track.
The living conditions in Puerto Rico are not great either
In the last seven years, Puerto Rico lost 300.000 citizens, who decided to leave the country to work abroad.
In addition, the unemployment rate is critically high.