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Venezuela: dodging near-term default, kicks can down the road

An imminent restructuring of the short term dollar debt of Venezuela’s state-owned oil company, PDVSA, means that the severely cash-strapped government should avoid default over the next 12 months. However, with similarly large FX debt repayments falling due beyond 2017, and the country’s chronic balance of payments crisis set to persist, there remains a high chance of a default over the medium term.

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