This has been expected for some time, but it is still a problem for the troubled island. It will make life for anyone who chooses to remain there more difficult, and therefore causes more residents to leave. That accelerates the downward spiral as has happened in major US cities like Detroit (if it still qualifies as a major city), and Greece. With interest rates now starting their long expected rise, any solution will be more difficult.
Can this be contained, as the Federal Reserve once said about sub-prime mortgages (wrongly!!!), or will it spread to other troubled jurisdictions like Chicago? Is it time to buy a farm and a gun? Stay tuned.