International rating agency S&P Global Ratings has announced Venezuela in partial default of its foreign debt after the country failed to repay 200 million USD on its government securities maturity yesterday. The agency first announced the partial default of Venezuela, which is on the verge of insolvency. The decision was taken yesterday after a grace period of 30 days for the payment of two obligations.
On Monday, a meeting between Venezuela and its creditors ended without an agreement to restructure a part of its foreign debt.
The Venezuelan government summoned the creditors to a meeting to try to achieve better conditions for paying at least 60 billion USD in bonds.
Sources familiar with the meeting said the government had not made a formal proposal for restructuring despite its promise that Venezuela would continue to pay its debt, estimated at about 150-180 billion USD.
The meeting was held at a time when international pressure on Venezuela was intensifying. The European Union has approved sanctions against the South American country, including an arms embargo, because of the growing “political polarization”.
Venezuela has identified the measures as “illegal, absurd and ineffective”. According to the country, the sanctions violate international law and the principles of respect for sovereignty, self-determination of peoples and non-interference in the internal affairs of states.