"The government of Puerto Rico faces severe fiscal challenges. A federal District Court judge in late March 2016 held that the island's government was insolvent and unable to pay its obligations on time. Emergency legislation (Act 21 of 2016) enacted on April 6, 2016, stated that the Puerto Rican government's fiscal condition 'is more dire than at any other point in its history' and that 'depleted resources and strained liquidity threaten to bind the Commonwealth to a choice between honoring its commitments to bondholders or continuing to provide the residents of Puerto Rico with essential services.' On April 9, 2016, the Puerto Rican governor invoked emergency authorities to maintain public operations."
CRS Report for Congress, R44095
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html