Venezuela is preparing to tell creditors in the coming weeks that its total debt burden is about $240 billion, Reuters reported, citing people familiar with the plans. The figure is above prior market estimates of about $150 billion to $200 billion and reflects a broader set of claims than the roughly $60 billion of defaulted sovereign and PDVSA bonds.
Reuters said the government is also preparing a macroeconomic framework that would put the size of the economy at about $100 billion and place debt above 200% of gross domestic product. A debt sustainability blueprint developed with Centerview Partners is expected in early July.
Venezuela said in May that it had begun a restructuring process covering both the sovereign and state oil company PDVSA, and that the process would be based on a macroeconomic framework and debt sustainability analysis. U.S. sanctions rules issued in May allow legal and financial advisory work related to a potential restructuring, but do not authorize the debt restructuring itself or direct negotiations with creditors without further licensing.