Venezuela

About Venezuela

Venezuela defaulted on its sovereign debt in November 2017. The country had 60 billion in outstanding bonds. Venezuela had been hit by falling oil prices, economic mismanagement under President Nicolas Maduro, and US sanctions. Hyperinflation reached 1.7 million percent in 2018. GDP fell by 75 percent between 2013 and 2021. Over 7 million Venezuelans fled the country. The default was complicated by the political crisis, with rival governments claiming legitimacy. The US recognized Juan Guaido as interim president in 2019. Most Venezuelan bonds trade at pennies on the dollar. The case is the largest ongoing sovereign default. Resolution depends on a political settlement. Venezuelas oil reserves, the largest in the world, provide potential recovery value for bondholders.