--- title: Puerto Rico's Debt Is Worse Than Detroit's Debt Was description: Puerto Rico's governor said the island cannot pay its $72 billion debt. Add high unemployment to the equation, and that's a bleak economic picture authors: - name: turnercowles url: https://money.com/author/turnercowles/ at_money_since: 2014 articles: 23 covers: - Career Advice - Credit Cards - Housing - Identity Theft - Insurance - Investing - Retirement - Taxes former_staff: true published: '2015-06-29T23:25:20.000Z' modified: '2015-06-29T23:25:20.000Z' section: Economy and Politics tags: - Bankruptcy - bonds - Debt - Detroit - mutual funds - Puerto Rico - puerto rico bonds - puerto rico debt crisis - state debt - The Economy - video word_count: 103 canonical: https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Puerto Rico Struggles With Impending Debt Crisis](https://img.money.com/2015/06/1280-puertorico.jpeg) *SAN JUAN, PUERTO RICO - NOVEMBER 12: Old San Juan, the center for Puerto Rican tourism, is viewed on November 12, 2013 in San Juan, Puerto Rico. The island territory of the United States, Puerto Rico, is on the brink of a debt crisis as lending has skyrocketed in the last decade as the government has been issuing municipal bonds. Market analysts have rated those bonds as junk and suspect it's 70 billion dollar debt might be unserviceable in the near future. With no industry other than tourism and the recent collapse of the real estate market, the way out is unclear. (Photo by Christopher Gregory/Getty Images)* Things aren't looking good for the Isle of Enchantment. Puerto Rico is in 3½ times as much debt as Detroit was in when it filed Chapter 9 bankruptcy in 2013. The island's $72 billion debt is larger per capita than any state, but the island's government can't file bankruptcy like Detroit did because only cities are allowed to file Chapter 9. Puerto Rico's governor, Alejandro Garcia Padilla, said the island's [debts are not payable](http://www.nytimes.com/2015/06/29/business/dealbook/puerto-ricos-governor-says-islands-debts-are-not-payable.html), and that he needs to pull it out of a "death spiral." This is bad news for mainland consumers as 70% of American mutual funds have Puerto Rico bonds. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Central America and the Caribbean", "item": "https://money.com/central-america-and-the-caribbean/" }, { "@type": "ListItem", "position": 4, "name": "Puerto Rico's Debt Is Worse Than Detroit's Debt Was" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/#webpage", "url": "https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/", "name": "Puerto Rico's Debt Is Worse Than Detroit's Debt Was", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2015-06-29T23:25:20.000Z", "mainEntity": { "@id": "https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/puerto-ricos-debt-is-worse-than-detroits-debt-was/#breadcrumb" }, "dateModified": "2015-06-29T23:25:20.000Z" }, { "@type": "Article", "headline": "Puerto Rico's Debt Is Worse Than Detroit's Debt Was", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2015/06/1280-puertorico.jpeg", "width": 1280, "height": 854, "caption": "Puerto Rico Struggles With Impending Debt Crisis" } ], "author": [ { "@type": "Person", "name": "turnercowles", "url": "https://money.com/author/turnercowles/", "@id": "https://money.com/author/turnercowles/#author" } ], "publisher": "https://money.com/#organization", "datePublished": "2015-06-29T23:25:20.000Z", "description": "Puerto Rico's governor said the island cannot pay its $72 billion debt. 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