Traders Scramble as Clock Keeps Ticking: Venezuela Default Watch
- Five-year implied probability of PDVSA default climbs to 99.5%
- State oil company faces $1.2 billion payment on Thursday
The Hurdles Facing Venezuela as It Seeks to Avoid Default
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Investors are getting mixed signals as Venezuela stares down billions of dollars in debt obligations over the next few weeks.
Although PDVSA said it paid an $842 million principal payment on its 2020 bonds due last Friday, the money has yet to materialize in the accounts of bondholders. Another $1.2 billion payment looms on Thursday. And to top it off, the clock is ticking on more than half a billion dollars in debt from the state oil firm and Nicolas Maduro’s government that are in a 30-day grace period. That said, if Venezuela can survive the next two weeks, it will be smoother sailing until the next big chunk of payments come due in April.