Harvard Professor Now Says Venezuela Won’t Escape Default in ’16

The markets have been right in saying this is a completely unsustainable situation,” Hausmann, director of Harvard’s Center for International Development, said by phone from Madrid. “It’s not that the government will plan to default. I think they will just stumble into one. They may get over the October payments but nobody’s thinking they’ll get over the 2016 payments.” Venezuela and its state oil company have about $5.6 billion in bond payments due in the last three months of this year and about $10 billion in 2016, according to Bank of America Corp. estimates. More…