Venezuela Plans Debt Analysis for Record Restructuring

Calixto Ortega, Venezuela's top economic adviser, announced during the IMF-World Bank meetings on Wednesday that the government intends to publish a debt sustainability analysis very soon. The move is part of an effort to restructure a debt pile estimated between $150 billion and $200 billion, which could represent the largest restructuring in history.

Ortega noted that the government originally planned to deliver macroeconomic and debt frameworks in June, but devastating earthquakes delayed the timeline. He stated that publishing these documents is a priority and expressed optimism regarding the process.

Beyond debt management, Ortega rejected dollarization as a solution for the country, arguing instead for the strengthening of local institutions and the national currency. The government is currently pursuing a medium-term inflation targeting framework to reach two-digit inflation and is signing agreements with gold producers to increase international reserves in the central bank.