PT  - JOURNAL ARTICLE
AU  - Hans Humes
TI  - Sanctions and Creditors’ Views on a Venezuela Sovereign Debt Restructuring
AID  - 10.3905/joi.2018.27.3.053
DP  - 2018 Aug 31
TA  - The Journal of Investing
PG  - 53--55
VI  - 27
IP  - 3
4099  - https://pm-research.com/content/27/3/53.short
4100  - https://pm-research.com/content/27/3/53.full
AB  - This article discusses the relationship between U.S. sanctions on Venezuela and Venezuela’s willingness to service its principle and interest obligations, and presents an activist creditor’s perspective on the effectiveness of litigation in sovereign debt restructurings. Then, it considers the question of whether strong actions should be undertaken by a debtor who is defrauded by a country agent to recover the defrauded funds to repay its creditors, and it outlines some country paradigms that could serve as general guidance. In general, recovery of ill-gotten gains is a lengthy process that recovers only a fraction of the funds, thus making it impossible to take them into account in debt sustainability analyses and post-default funding arrangements. It concludes with some thoughts on how to proceed with an eventual Venezuela debt restructing.TOPICS: Fixed income and structured finance, emerging, financial crises and financial market history