Venezuela missed a crucial payment and finally defaulted on its bonds

By | 15.11.2017
Venezuela's Vice President Tareck El Aissami speaks during a meeting with bondholders and their representatives, in Caracas

After years of brinksmanship, Venezuela is officially in default, according to credit ratings agency Standard & Poor. The country failed to make an interest payment to international creditors this week.

Published 41 mins ago  |  Photo by Reuters/handout
Venezuela's Vice President Tareck El Aissami speaks during a meeting with bondholders and their representatives, in Caracas

$200 million

The cash-strapped Venezuelan government has been fighting to pay foreign creditors on time in order to preserve assets like state oil firm Petróleos de Venezuela, a vital source of cash.

Venezuela's Vice President Tareck El Aissami speaks during a meeting with bondholders and their representatives, in Caracas

$200 million

Venezuelan president Nicolás Maduro’s administration continued to pay creditors even as the country has faced dire food and drug shortages.

Venezuela's Vice President Tareck El Aissami speaks during a meeting with bondholders and their representatives, in Caracas

$200 million

But now the situation is looking dicey. The foreign reserves that Venezuela can use to pay creditors dropped from $16 billion in 2015 to $5 billion in 2017. Foreign debt is estimated to be at $140 billion.

Venezuela's Vice President Tareck El Aissami speaks during a meeting with bondholders and their representatives, in Caracas

$200 million

Venezuela held a meeting with creditors on Nov. 14, but the event lasted only 30 minutes and very little progress was made.

Published 41 mins ago

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