Venezuela in selective default, says credit ratings agency

Ratings Agencies Cave: Venezuela Defaulted, Selectively

Ratings Agencies Cave: Venezuela Defaulted, Selectively

Venezuela's government said its plan to refinance some $60 billion in bonds was successfully underway, while a rating agency declared the nation in selective default over missed coupon payments.

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

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.

Besides the two bond payments it has defaulted on, Venezuela is overdue on four other debt payments but they were still within the 30 day grace period, S&P said.

Derivatives industry association ISDA said on Tuesday it has received a question from investors as to whether the Republic of Venezuela is in default due to a late payment of coupons on sovereign bonds.

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

The US has designated vice president El Aissami himself a drug kingpin with whom US entities are barred from dealing.

Participants in the creditors' meeting said at least one attendee left the room when it became clear Mr Aissami would be leading it.

The US called an informal meeting of the UN Security Council, where US Ambassador Nikki Haley slammed Venezuela as an "increasingly violent narco-state" that poses a threat to world security.

Venezuela's debt crunch comes as no surprise, as the government cuts back on imports to service its debt, leaving the population struggling with shortages of food and medicine.

A meeting between Venezuela and its creditors on Monday ended without an agreement to restructure the country's debt, the same day the European Union adopted sanctions over its "political polarisation".

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