Venezuela’s Ministry of Economy and Finance has announced a sweeping restructuring of its foreign debt, including liabilities linked to state oil company PDVSA.
The government estimated the country’s total external debt at about 170 billion dollars.
Venezuela has remained in default since 2017. According to the International Monetary Fund (IMF), the country’s economy is currently valued at roughly 110 billion dollars annually.
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The Economy and Finance Ministry said U.S. financial sanctions had weakened Venezuela’s ability to honour its debt obligations.
Washington has gradually relaxed sanctions since former Venezuelan leader, Nicolás Maduro was captured by the U.S. military in January.
Just days earlier, the U.S. Treasury Department authorised Caracas to appoint legal and financial advisers to assist with the restructuring process.
Debt restructuring negotiations are often lengthy and complicated, typically involving extensive discussions with creditors.
U.S. President, Donald Trump’s administration has also pushed to expand its influence over Venezuela’s vast oil reserves and now holds considerable influence in the country’s oil sector and political affairs.
NAN
