[CLOSED] QUICK POLL: Venezuela's sovereign debt

Author: IFLR Correspondent | Published: 5 Feb 2019
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 [As countries and organisations around the world choose to recognise the Venezuelan leader of the opposition Juan Guaidó as its new interim president, and calls for Nicolas Maduro to stand aside grow louder, the question of what to do about the country’s rising debt has resurfaced.

Venezuela reportedly has more than $60 billion of publically traded debt, much of it issued by state-owned oil company PDVSA. In the Maduro-era the country has regularly failed to make repayments, and default is looking increasingly likely.

As global players like the US, the UK and the EU back Guaidó, a regime change is potentially close. The humanitarian crisis the country has been suffering for several years may too be nearing an end. 

There are suggestions that while the country undergoes an economic recovery and attempts to rebuild from years of damage, holders of its debt should accept some form of negotiated terms that would allow resources to be directed to this task – not to debt repayments. Some might argue that there is little incentive for creditors to take a humanitarian move like this, while others would say that the best chance of a full recovery of debt would be from a functional, healthy economy.

With this in mind, IFLR is polling readers on the following question:

With Venezuela installing a new president and a potential new administration, should the international finance industry consider reducing and/or deferring claims on Venezuela and its public sector borrowers so as not to further hamper its economic reconstruction?

Results will be published in the next edition of IFLR, with full analysis from investors and advisers with a stake in the country.

Click here to contribute and take the survey, or input http://bit.ly/venezuelapoll into your browser. To discuss the survey in more detail, please contact john.crabb@euromoneyny.com

IFLR publishes its monthly poll question on iflr.com and Linkedin group page iflr.com/LinkedIn. Throughout the month, IFLR’s editorial team gather the responses and interview selected respondents.