Wall Street Sees ‘Existential Crisis’ as Venezuela Payday Nears
- Traders fear payment delay as upcoming debt lacks grace period
- Default on bonds backed by Citgo would put refiner in play
Venezuela Inches Closer to Dictatorship
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Venezuelan investors are getting ready for a wild ride over the next five weeks as the government stares down $3.5 billion in debt payments.
While all the country’s due dates in the past year have elicited serious hand-wringing, the next few are on a whole new level. That’s because unlike recent transactions in which a 30-day grace period allowed Venezuela to avoid default, the upcoming deadlines have no leniency. Further complicating matters, some of the bonds are backed by a majority stake in Citgo Holding Inc., potentially putting one of the biggest U.S. refiners in play.