This article appeared online at TheNewAmerican.com on Monday, January 4, 2015:
Last June Puerto Rico’s Governor, Garcia Padilla, said his government was out of money and would have to default on some of the bonds issued by various government agencies. It owed some $54 million to the Public Finance Corporation and another $140 million to the government’s Development Bank. By moving some funds around on the government’s balance sheet, Padilla was able to make most of those payments.
Since then Padilla’s financial woes have snowballed.