Venezuela may be in default in as little as 48 hours


With two critical debt repayment deadlines rapidly approaching, analysts are sounding the alarm that Venezuela may soon be in default.

PDVSA, the distressed socialist country’s state oil firm, must repay $842 million on a four-year bond on Friday and $1.12 billion on Nov. 2, according to the Financial Times. Neither payment has a grace period, meaning that nonpayment could trigger a default, and investors could demand Venezuela immediately pay back all of its debt.

While bondholders might not want a default, holders of credit-default swaps would likely request that the International Swaps and Deriviates Assocation declare a default so that they can receive payments on their contracts, Bloomberg reported.

Venezuela raised default concerns by missing large payments that were due over the weekend, totalling $237 million on two bonds, according to CNBC.

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