Venezuela to restructure debt, avoid insolvency
10 November, 2017
The Venezuela government announced last week that it will restructure its foreign debt as the country's economy lies on the brink of collapse, news wires reported. President Nicolas Maduro said that this plan was the only way to combat the consequences of US financial sanctions.
“I decree a refinancing and a restructuring of all external debt and all of Venezuela's payments,” Maduro said in a speech broadcast across the nation. At the same time, he also ordered state-run oil firm PDVSA to make one last $1.2bn bond payment in full. This move could be seen as the president trying to avoid a nasty battle with Wall Street.
The announcement came one day after Maduro unveiled the new 100,000 bolivar bill, the largest bank note ever issued in the country's history, amid inflation that has reached catastrophic proportions. Venezuela's economy has shrunk by more than 35% since 2014, due to falling oil prices and the catastrophic financial policies of both Maduro and his predecessor Hugo Chavez.