A loudly ticking debt bomb appears ready
to detonate in Venezuela as they face $4 billion of bond payments that are
coming due in October and November. At this critical moment, Venezuela needs to
reestablish representative democracy and reopen their economy; billions of
dollars of financial support are available to them. Venezuela’s debt challenge
is pretty easy to understand. Under Chavezism, the country built up a mountain
of debt to finance populist economic policies. While total debt is thought to
exceed U.S. $150 billion, well in excess of the country’s GDP, focus falls on
the $60 billion of bonds on which about $8 billion is due over the next year
and $30 billion over the next 5 years. More…
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