Puerto Rico is beyond broke, has been shut out of the bond market, and is paying bills with credit. Unlike Detroit, it can’t declare bankruptcy. Mutual funds are big holders of Puerto Rico bonds, which have higher than normal interest rates and tax-exempt status in all states.
Pension debt is problematic, however their real problem is they sold way too many bonds, then sold more to pay for what they sold previously. Good luck with that. Large payments are due soon and they thought themselves sophisticated and participated in interest rate swaps. Banksters just love to see the unwary buy them.
Inquiring minds want to know. Where did the money go? Looks to me like it’s the usual parasitical bankster class and their cronies looting an entity until it’s dead then walking away.