Venezuela faces more than US$240 billion in debt, equivalent to 216% of its GDP, according to Bloomberg reports
The Daily Journal.- Venezuela’s debt continues to grow as the government of Acting President Delcy Rodríguez prepares a comprehensive restructuring of the country’s external obligations.
According to Bloomberg, a new arbitration award in favor of U.S. insurer Liberty Mutual added more than US$1.5 billion to the country’s liabilities.
The ruling, which stems from foreign exchange restrictions that prevented the repatriation of funds, adds to a complex web of obligations that creditors estimate at approximately US$240 billion, according to Financial Times reports.
Venezuela’s debt, which includes defaulted sovereign and PDVSA bonds, accrued interest, bilateral loans and arbitration claims, amounts to approximately 216% of the country’s Gross Domestic Product (GDP). The International Monetary Fund projected Venezuela’s GDP at an estimated US$111.3 billion for 2026, before the two earthquakes struck.
Arbitration claims and Venezuelan debt at the center of the restructuring process
The Liberty Mutual award, which Venezuelan lawyer José Ignacio Hernández estimates at around US$1.6 billion, illustrates the complexity Caracas faces. Unlike bonds, which have a clearer structure, arbitration claims raise additional questions about their recognition and how they will compete with other creditors.
Venezuela’s debt already includes liabilities such as US25billioninbilateraldebt,US20 billion in arbitration claims and US$8.69 billion owed to the Paris Club.
In this regard, Delcy Rodríguez’s government announced a Venezuelan debt restructuring plan in May. U.S. General License 58 allows the government to hire advisers, although it does not authorize direct negotiations. Meanwhile, Venezuela’s debt continues to grow, as the new Liberty Mutual award demonstrates.
With information from news agencies
