Venezuela's debt may hit $240 billion ahead of restructuring, FT says

Venezuela is set to reveal a total debt burden of $240 billion, exceeding market estimates, in what could become the largest sovereign debt restructuring in history.

Venezuela is ​poised to disclose a ‌total debt burden ​of $240 billion, exceeding market estimates of $150 billion to $200 billion, as it prepares for what could become the ‌largest sovereign debt restructuring, the Financial Times reported on Wednesday, citing sources familiar with the plans.

The country announcedlast month that it would begin restructuring its external debt. ‌At the time, analysts estimated that Venezuela's total liabilities, including arbitration awards and ‌accrued interest, could exceed $150 billion. Venezuela is one of the world's largest sovereign default cases, with the sovereign and state oil firm PDVSA totalling about $60 billion in defaulted bonds outstanding.

The South ⁠American nation ​has missed payments ⁠on its external debt since 2017. The country is expected to outline the extent of its borrowing ⁠when it presents an update on its financial position to creditors in the coming ​weeks, according to the FT report.

The report added that U.S. advisory ⁠firm Centerview Partners, which was hiredby Caracas, has helped develop a plan aimed at restoring the country's ⁠debt ​sustainability. According to sources familiar with the matter, the blueprint is set to be released in early July. Centerview Partners did not immediately respond to ⁠request for comment, outside regular business hours.

Venezuela will also release a macroeconomic framework ⁠later this month, which ⁠will estimate the size of its economy at about $100 billion, and put its debt-to-GDP ratio above 200%, FT added.