Latin America
Related: About this forumCould Venezuela's debt crisis force regime change?
Venezuela might look bad right now with protests, scarce food and fraught political tensions. But it could soon get a lot worse, according to analysts, because of a debt emergency raising the specter of default.
Such a scenario would cut the oil-rich but cash-starved country off from capital markets. Lenders could seize assets -- tankers, refineries, accounts -- belonging to state oil company PDVSA. The humanitarian crisis could deepen as already limited imported essentials dry up completely and desperate citizens leave.
How close is Venezuela to defaulting on its debt, estimated at over $100 billion?
President Nicolas Maduro's government has so far gone to extraordinary lengths to service it, prioritizing debt repayments over all else, including badly needed imports of food, medicine and other essentials.
https://www.yahoo.com/news/could-venezuelas-debt-crisis-force-regime-change-012148918.html
David__77
(23,402 posts)...
GatoGordo
(2,412 posts)Venezuela cannot pay off the interest on the debt on bonds outstanding. The interest they are paying is about 60%. It doesn't have any more collateral. It can't pay its bond holders and is paying Russia and China with oil it cannot pump without US know-how and light sweet Brent.
I give Maduro until November.
GatoGordo
(2,412 posts)Were horrid. They've run out of options. Factor in the fact that friendly countries are the likes of Cuba, Syria, Nicaragua and Bolivia... none have the wealth to help Maduro.