The Venezuelan government announces the launch of a $170 billion debt restructuring.

Golden Finance reports that on May 14th, according to The Wall Street Journal, Venezuela announced on Wednesday local time that it will initiate a process to restructure its massive government debt, aiming to leverage the improving relations with the United States to normalize relations with creditors and re-enter the international financial markets. Economists estimate that Venezuela’s public debt is as high as $170 billion, and this restructuring is expected to be one of the largest and most complex sovereign debt restructurings. Venezuela defaulted in 2017, and currently its creditors include a wide range of entities, such as investors holding bonds issued by the Venezuelan government and state-owned oil companies, companies like ConocoPhillips claiming billions of dollars due to asset expropriation, and bilateral lenders. At the time of this announcement, acting President Rodriguez is working with the Trump administration to attract oil investors and promote the country’s reintegration into the global economy after years of U.S. sanctions and international isolation. Last week, the U.S. authorized Venezuela to hire advisors to prepare for potential debt restructuring. Venezuela stated that it expects to publish its macroeconomic framework and public debt sustainability analysis next month. (East News Agency)