Venezuela is seeking to push through a complex debt restructuring, with claims approaching $200 billion, as the country recovers from devastating earthquakes that killed thousands of people.
Debt Restructuring
Bondholders say Caracas hopes to secure the early stages of the overhaul of its sovereign debt and that of state oil firm PDVSA by November to unlock billions of dollars in investment.
However, debt experts warn that speeding the deal through could leave the country burdened with unsustainable debt for decades, just as it needs billions of dollars to rebuild after the earthquakes.
Concerns Over Government Data
Analysts estimate Venezuela’s total liabilities at nearly $200 billion. The need to fully assess damage from the earthquakes, which killed more than 3,000 people and damaged hospitals, schools, and other infrastructure, adds another layer of complexity.
The International Monetary Fund (IMF) said it was not involved in Venezuela’s restructuring, and the lack of an independent audit for the figures has added to concerns about credibility.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
