TY - JOUR T1 - Why Venezuela’s Debt Restructuring Is More Challenging than Past Restructurings JF - The Journal of Investing SP - 37 LP - 44 DO - 10.3905/joi.2018.27.3.037 VL - 27 IS - 3 AU - Elena Duggar AU - Jaime Reusche Y1 - 2018/08/31 UR - https://pm-research.com/content/27/3/37.abstract N2 - Venezuela’s debt restructuring could be the fourth-largest sovereign restructuring in history. The country’s default was triggered by missed interest payments on both government and Petroleos de Venezuela S.A. (PDVSA) bonds in November 2017. Shortly thereafter, the government announced its intention to restructure its debt. This article compares Venezuela’s crisis with prior sovereign bond defaults and argues that several key features will make restructuring Venezuela’s debt more complex and likely more protracted than in past sovereign debt crises, with likely larger-than-average losses experienced by bondholders. These include Venezuela’s heavy annual debt maturities through the next decade, the interdependence of government and PDVSA finances, the extent of the economic crisis in the country, elevated sociopolitical tensions, lack of transparency on economic data, and U.S. sanctions imposed on Venezuela.TOPICS: Fixed income and structured finance, emerging, financial crises and financial market history ER -