We estimate that total foreign defaulted debt issued by Venezuela

 We estimate that total foreign defaulted debt issued by Venezuela,

PDVSA, and Elecar reached roughly $32.5bn at the time of writing.

This includes both missed interest and amortization payments. Note that just

Venezuela’s outstanding international bond debt is about $64bn, which is

almost 100% of GDP, as per our calculations. If we add in claims such as

ICSID awards, corporate arrears, and past due interest, it becomes clear that

any debt resolution would imply a deep haircut. In our view, an improvement

of the country’s democratic conditions as well as humanitarian considerations

will supersede the start of any debt restructuring process