Venezuela's distressed debt: who is in line to collect?

The toppling of President Nicolas Maduro has focused attention on Venezuela's long-running sovereign default; analysts estimate about $60 billion in defaulted bonds and roughly $150–170 billion in total external liabilities.

Venezuela's debt crisis has returned to the spotlight after political change in Caracas. The country defaulted on international bonds in late 2017. Accrued interest, arbitration awards and other claims have increased total external liabilities well beyond the original bond face value. Estimates place defaulted bonds at about $60 billion and total external obligations near $150–170 billion. Key facts: - Venezuela missed international bond payments in late 2017 and has been in default since then. - Analysts estimate roughly $60 billion of defaulted bonds and about $150–170 billion in total external liabilities, depending on how accrued interest and court awards are counted. - Citgo’s parent, PDV Holding, is at the center of U.S. legal claims, with about $19 billion of claims registered in Delaware related to recovery efforts. - A formal restructuring is expected to be complex and lengthy, with the roles of the IMF and U.S. sanctions remaining unclear. Summary: Venezuela’s large stock of distressed debt, overlapping legal claims and sanctions make recovery outcomes uncertain and complicate any debt workout. Undetermined at this time.