Venezuela just defaulted, moving deeper into crisis

[thackney]

Venezuela just defaulted, moving deeper into crisis
http://money.cnn.com/2017/11/14/news/economy/venezuela-debt-default-sp/index.html

The South American country defaulted on its debt, according to a statement issued Monday night by S&P Global Ratings. The agency said the 30-day grace period had expired for a payment that was due in October.

A debt default risks setting off a dangerous series of events that could exacerbate Venezuela's food and medical shortages.

If enough holders of a particular bond demand full and immediate repayment, it can prompt investors across all Venezuelan bonds to demand the same thing. Since Venezuela doesn't have the money to pay all its bondholders right now, investors would then be entitled to seize the country's assets -- primarily barrels of oil -- outside its borders....

[thackney]

Venezuela in selective default, says credit ratings agency
http://www.bbc.com/news/world-latin-america-41982069
11/14/2017

The ratings agency said the South American nation had failed to make $200m (£153m) in repayments on its foreign debt.

Venezuela's state-run oil company PDVSA has also been declared in default by rating agencies Fitch and Moody's.

The news came just hours after the government met investors in Caracas to try to renegotiate its debt.

Standard & Poor's declares a "selective default" when a country has failed to pay one or more of its financial obligations when it came due.

In the case of Venezuela, the government of President Nicolás Maduro failed to make $200m in payments on two global bond issues by 12 November, when a 30-day grace period expired.

S&P says Venezuela is also overdue on four other bond payments worth a total of $420m but that the grace period has not yet expired on those payments.

Venezuela's total external debt, which also includes loans from countries like Russia and China, is thought to be as much as $140bn....

[Frank Cannon]

The agency said the 30-day grace period had expired for a payment that was due in October.

Oh no. More fake news. The Venezuelans sent the bond payment. The Bus Driver said so. It's just lost in the mail.

[Sanguine]

....
Venezuela's total external debt, which also includes loans from countries like Russia and China, is thought to be as much as $140bn....

Aw, heck, that's nothing!  The US federal debt as of 2017 is $21.09 trillion*.  We're #1!!


*$12.89 trillion externally held.

[IsailedawayfromFR]

Venezuela just defaulted, moving deeper into crisis
http://money.cnn.com/2017/11/14/news/economy/venezuela-debt-default-sp/index.html

The South American country defaulted on its debt, according to a statement issued Monday night by S&P Global Ratings. The agency said the 30-day grace period had expired for a payment that was due in October.

A debt default risks setting off a dangerous series of events that could exacerbate Venezuela's food and medical shortages.

If enough holders of a particular bond demand full and immediate repayment, it can prompt investors across all Venezuelan bonds to demand the same thing. Since Venezuela doesn't have the money to pay all its bondholders right now, investors would then be entitled to seize the country's assets -- primarily barrels of oil -- outside its borders....

Correct me if I am mistaken, but the bond is not backed by these assets.  A bondholder would need to go to court (and win) to seek to retrieve bond repayments by seizure of assets and their sale.

[Fishrrman]

Venezuela's debt isn't Venezuela's problem.
They can't pay up.
They probably NEVER will be able to pay up.

Au contraire...
Venezuela's debt is their creditors' problem.
What are they going to do about it?