Caracas: Venezuela is burdened by one of the largest unresolved debt crises in the world, with billions of dollars owed to investors governments and companies. Nearly a decade after the country stopped paying its foreign obligations the question of who will eventually collect remains unanswered.
The crisis began in 2017 when Venezuela defaulted on most of its external debt. Since then interest has accumulated and legal claims have multiplied. Economists estimate the country’s total foreign liabilities at about 150 to 170 billion dollars, a sum that far exceeds Venezuela’s annual economic output.
A large portion of the debt is held by international bondholders. These include traditional investors and distressed debt funds that bought Venezuelan bonds at deep discounts. The bonds continue to trade at very low prices, showing expectations of heavy losses in any future repayment deal.
Another major group of claimants includes companies that won arbitration cases after Venezuela nationalized private assets years ago. These firms have secured court rulings worth billions of dollars and are now trying to enforce them by targeting Venezuelan assets abroad.
At the center of many legal battles is Citgo, the US based oil refiner owned by Venezuela’s state oil company. US courts have allowed several creditors to pursue claims linked to Citgo’s parent company. However the value of approved claims already exceeds the worth of the company, meaning not all creditors can be fully paid.
Venezuela also owes significant sums to governments such as China and Russia, largely from oil backed loans agreed in earlier years. These debts are less transparent and are expected to be addressed through political negotiations rather than court proceedings.
Any comprehensive debt settlement remains difficult. US sanctions continue to restrict Venezuela’s ability to negotiate freely or return to global markets. Ongoing political instability, including the detention of President Nicolás Maduro, has added to the uncertainty.
While some investors hope that political change could eventually unlock a restructuring, others warn that years of legal disputes and competing claims will make recovery slow and limited. For now Venezuela’s unpaid billions remain locked in limbo, with creditors waiting as the country’s economic crisis continues.