Venezuela's Debt Dilemma: A Record Restructuring on the Horizon

Venezuela plans to disclose a $240 billion debt, exceeding expectations, as it prepares for a major debt restructuring. The country's default since 2017 sees it hiring Centerview Partners for assessment. Analysts worry this could affect bondholder recoveries amid a complex creditor landscape.

Venezuela is poised to announce a significant $240 billion debt, surpassing earlier estimates, as the nation embarks on what might be the most extensive sovereign debt restructuring in history, sources told the Financial Times.

The financially troubled country, which defaulted in 2017, has enlisted U.S.-based advisory firm Centerview Partners for a comprehensive evaluation of its debts. Originally projected between $150 billion and $200 billion by experts, the country's debt figure drew reactions from financial markets.

The Financial Times suggested that results, initially expected by June, now possibly arriving in July, could impact bondholder strategies amid concerns about recovery prospects, especially if claims extend beyond primary creditors.