Venezuela’s resource curse

Author: John Crabb | Published: 26 Feb 2019

This issue, IFLR asked readers if bondholders should accept reduced repayments to help the country back onto its feet


With Venezuela installing a new president and potentially a new administration, should the international financial industry consider reducing and/or deferring claims on Venezuela and its public sector borrowers so as not to further hamper its economic reconstruction?

The year 2019 has already been a rollercoaster of emotions for the Venezuelan people – which, for a country that has been rocking for several years now, is really saying something. Juan Guaidó, the leader of the opposition and elected leader of the National Assembly since early January, declared himself interim-president of Venezuela in early February. After ratification by the US, Canada, Brazil and other Latin American countries came acceptance from the EU and other global players. This effectively creates a two-tier presidential system, where both the incumbent Nicolas Maduro and Guaidó claim legitimacy....