A picture is worth 10,000 words #24: Venezuela’s debt

January 29, 2007

This is a very plain vanilla plot, but it needs to part of the collection  for reference. Last year  external debt went down as the Government concentrated on giving Argentina a hand, rather than improving our debt profile, which could have been done. External debt is still manageable at these levels as long as oil prices hold up. Internal debt has stabilized as it has gotten more difficult for the Government to place it unless it offers some type of dollar linkage as in the new so called TICC’s. As a percentage of GDP this are reasonable levels, except that at current yields (<7%) it is not clear that there would be appetite abroad for a Venezuelan issue larger than US$ 3 billion. A devaluation would lower internal debt significantly.

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