In 48 hours, the world's largest oil reserve is likely to default!

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In 48 hours, the world's largest oil reserve is likely to default!

2017-10-26 18:33:19 505 ℃

According to foreign media Zerohedge reports, Venezuela default has entered the countdown". As of last weekend, Venezuela failed to repay the debt of $237 million, had also failed to pay in the earlier this month due to the $350 million debt interest, which makes the total outstanding debt of $587 million.

Venezuela is the world's largest crude oil reserves country. In 2014, oil prices plummeted from $100 / barrel to $30 per barrel, which led to Venezuela's "debt taking" life, and the bond market generally believed that Venezuela would face a debt default.

Venezuela's maturing debt, data sheet source Peng Bo

Merrill Lynch sovereign debt analyst Jane Brauer said:

"With the delay of coupon payments, the possibility of Venezuela's short-term default will increase significantly. The $842 million debt owed by the Venezuelan oil company (PDVSA) will expire on Friday, and there is likely to be a default.

The payment is not typical bond repayment, without an additional 30 day grace period. The $1 billion 100 million debt due in November 2nd has no 30 day grace period. "

Brauer said that in the past, Venezuela's debt repayment has been in a similar state of uncertainty, before the payment of huge debt, bond prices plummeted.

Venezuela has shown that debt repayment is a challenge, as well as redefining the concept of "on time" payment, which means that "payment on time" means "at the end of the grace period"".

Now, the latest debt maturity date is this Friday, which means that in less than 48 hours, unless Venezuela can repay $842 million, it will face a breach of contract.