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Venezuela’s Default: What Is Maduro Thinking?

By Bret Rosen

Maduro’s calls for restructuring may be disingenuous – or the government could indeed have a plan for its debt.

The Venezuela debt saga continues to confound investors, with many wondering what exactly the government is hoping to accomplish with its current strategy. The possible explanations range from a search for a new scapegoat for the ongoing economic crisis (with the initials DJT), to a savvy maneuver to reduce the country’s liabilities. Trying to read the tea leaves in Caracas is always hard – but let’s give it a try.

To recap: On Nov. 2, Venezuela’s President Nicolás Maduro made an announcement that sent shockwaves through the emerging markets debt investment community. Maduro said he...

Read this article on the Americas Quarterly website. | Subscribe to AQ.

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