How Political Turmoil Could Limit Venezuela's Debt Options
How Political Turmoil Could Limit Venezuela's Debt Options
By
José Ignacio Hernández G.
Potential constraints on the government's ability to accrue and renegotiate debt could further complicate Venezuela's economic future.
If there is something worse for investors than a debt crisis, it’s a debt crisis with constitutional turmoil on the side.
Such is the case in Venezuela.
Over the past several months, Venezuela has missed deadlines on bond payments, putting investors on edge. The only response from the government of President Nicolás Maduro so far has been an ambiguous proposal of renegotiation that has not yet been implemented. Lawsuits loom.
At the same time,...
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