Venezuela has a $120-$140 billion external debt which it borrowed when oil prices were more than $100 a barrel. Experts predict that a default is inevitable unless oil prices recover quickly.
Infographics: Venezuela’s economic tragedy
President Nicolas Maduro’s decision to restructure Venezuela’s debt with banks and investors could trigger a debt crisis of a size not suffered in Latin America since Argentina’s massive 2001 default. With foreign reserves now below $10bn, down from $30bn just five years ago, Venezuela has been forced to make an 80 percent cutback in imports since 2012.
The IMF calculates inflation is running at more than 652 percent — pushing the price of a single egg to 500 bolivars or around $50. Fitch Ratings warns that Caracas faces bond coupon payments of $619.6 million in the last two months of 2017 and $3,348 million in 2018, as well as external bond principal maturities of $2,052 million next year.
