Economic Academy requests transparency in Venezuela's external debt restructuring

Venezuela's National Academy of Economic Sciences (ANCE) has called for transparency in the government's process of restructuring the nation's external debt. In a statement, the academy stressed the importance of guaranteeing legitimacy and institutional support to achieve sustainable agreements with international creditors.

The ANCE highlighted that the debt restructuring, announced by the Vice Presidency of Economy, presents a complex challenge. This is due to Venezuela's prolonged default on payments by state entities, including Pdvsa, Corpoelec, and Sidetur, which began in November 2017. The country also faces outstanding obligations to multilateral organizations, bilateral creditors, suppliers, and ongoing international arbitration processes.

Furthermore, the academy pointed out that Venezuela's inability to renegotiate these commitments on favorable terms will likely keep the country isolated from major international markets, hindering economic and social recovery. The ANCE stated that there is currently insufficient official information to determine the exact size of Venezuela's external debt. However, independent estimates suggest the debt levels are incompatible with the current and future repayment capacity of the indebted entities.

The ANCE urged the government to ensure the legitimacy and transparency of the process and the sustainability of its outcomes. They also emphasized the necessity of accompanying the restructuring with a formal economic recovery program and institutional reforms, backed by international financial institutions like the International Monetary Fund (IMF) and the World Bank. The academy considers the IMF's participation crucial for ensuring sustainability and building credibility for any agreement with creditors.