This is what happens now Puerto Rico has defaulted on some of its debt

Puerto Rico has an outstanding debt of $72bn. Economists say the country should shrink the size of the state rather than default on repayments (Getty Images)

Puerto Rico defaulted on some of its debt this weekend, pushing the commonwealth formally into default and starting the restructuring process to try and get the US territory’s finances back on track.

Puerto Rico found the money to make a $169 million payment on debt owed by the Government Development Bank on Friday but did not make a payment due on Public Finance Corporation bonds worth $58 million. Victor Suarez, chief of staff for Puerto Rico governor Alejandro Garcia Padilla, said that the commonwealth had run out of money to keep up with repayments on debt estimated to be worth $72 billion.

"We don't have the money," Suarez told journalists in San Juan on Friday, referring to the $58 million payment due on Public Finance Corporation (PFC) bonds, according to Reuters.

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"The PFC payment will not be made this weekend," Suarez said. "It was not consigned."

A default, or failure to pay, a debt obligation is one step forward on the road to bankrupcy. This default is an indication of the financial trouble confronting Puerto Rico because it is the first time the commonwealth has ever defaulted on the payment of principle or interest of debt, according to a 2014 bond offering statement.

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Suarez said the commonwealth only had enough cash to keep operating until November if no additional measures are taken.

Credit agencies Moody’s and Standard and Poor’s have said they would view non-payment of the bonds as a default. Bond-holders are expected to file suit in San Juan as early as Tuesday.

Cesar Miranda, the Puerto Rico Justice Secretary, told Reuters that the government has been preparing to defend itself against claims.

Some investors are questioning how the commonwealth is going to balance repayments to investors against the demands of running the commonwealth. In the past week, vulture funds have called for Puerto Rico to cut spending in education by sacking teachers in order to meet debt repayments and avoid default.