The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Debt: Can we skip ahead with Venezuela?

The country is now in default on almost all of its foreign currency bonds; investors need to think ahead about the debt renegotiation to come.


Mexico blew up the LDC crisis in 1982 but the Brady Plan wasn’t introduced until 1989. The 1980s were a lost decade for most of Latin America as debt negotiations advanced slowly, stalled, and broke down.

The same dynamics have affected many other defaulting nations. Even with EU support the Greek debt crisis has been a tortuously slow affair, with debt plans agreed only to be shown to be too moderate to allow the country to grow again.

The common thread in all these painfully slow accords, of course, is the slow adjustment of creditors to the size of debt write-off required. Creditors won’t take big haircuts voluntarily. At least not in one go – they have to be led there in tranches when they see the unviability of a country trying to pay off restructured debts while still weighed down by capital and interest.

The same dynamics look like they will play out in Venezuela. The country is now in default on almost all of its foreign currency bonds and, despite Maduro tenaciously hanging onto power, some investors are already thinking aloud about the debt renegotiation to come.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree