The Indicator from Planet Money · Wednesday, July 8, 2026
Venezuela is grappling with a significant economic crisis, attempting to restructure over $240 billion in debt, which is more than its entire annual GDP of $100 billion. This debt restructuring is complicated by a recent devastating earthquake that caused billions of dollars in economic damage, estimated to be about a tenth of the country's GDP, and is likely to increase the government's borrowing needs for reconstruction. The situation is further complicated by a diverse group of creditors, including bondholders, companies owed for unpaid invoices, and those whose assets were expropriated, such as Exxon Mobil.
“I've been watching Venezuela quite closely and in particular the shockingly large debt its government holds.”
“The government has about $240 billion in debt it's trying to renegotiate.”
“And throw in earthquakes, and yeah, that is the grim economic story in Venezuela right now.”