THE BOND BUYER
OCT 18, 2013"Analysts point to years of bad Puerto Rico government policies as primary cause of the commonwealth's debt problem, in which bond obligations ballooned while its economy stagnated".
The $70 billion figure for 2012 includes all government debt in Puerto Rico, including local municipalities, public corporations, non-recourse and revenue-specific debt. Of the $70 billion, $44 billion (63% of GNP) is for the central government and the public corporations, including about $9.5 billion of Puerto Rico Electric Power Authority debt.
While analysts and the ratings agencies are united in saying that the size and growth of the debt has been a problem, some say the use of the debt has also been negative in various ways.
It would have been better if the debt had been used for strategic investments like building universities and dams, Center for a New Economy president Miguel Soto-Class said. Instead, in recent years it has been going to cover recurring costs like payroll.