The loss of tax perks and its status as a commonwealth are just two of many reasons for Puerto Rico’s bankruptcy.

The island is now hoping that the default will give it leverage to restructure its debt. US Treasury Secretary Jack Lew was less than amused when his German colleague, Finance Minister Wolfgang Schäuble quipped, “we could take Puerto Rico into the euro zone, if the US were willing to take Greece into the dollar union.” Thus reminding the Americans, that while the whole world seemed fixated on Greece and its debt crisis, a similar drama was unfolding in the Caribbean.

Source: CreditReport