Puerto Rico Seeking Debt Solution

For the first time since becoming a United States territory Puerto Rico has officially defaulted. On Monday Puerto Rico’s development bank paid just about $630,000 of the $58 million due to creditors.

All and all Puerto Rico is looking at a total outstanding balance of $73 billion. So, if the economic collapse has any fallout in the United States the worst of it isn’t expected to be felt on Wall Street just yet. Americans actually hold Puerto Rico’s debt through mutual funds.

Since Puerto Rico is a United States territory and not a state it can’t file for the same bankruptcy protections Detroit did during its debt crisis. Although a plan is underway there will be no immediate relief anytime soon. For more details be sure to check out the video above.