Venezuela Acknowledges $240 Billion in Debt, the Largest Oil Restructuring in History

Venezuela recognized sovereign and PDVSA debt of nearly $240 billion, the largest recorded oil restructuring, according to an Atlantic Council analysis published on July 10. The figure doubles previous market estimates and includes unpaid bonds, accumulated interest since 2017, arbitration awards, and bilateral loans.

The interim government of Delcy Rodríguez, following the capture of Nicolás Maduro in January 2026, hired U.S. bank Centerview Partners as financial advisor. Of the total, $60 billion corresponds to sovereign and PDVSA bonds in default, plus $40 billion in accumulated interest, according to the Financial Times. China is the largest individual bilateral creditor, with approximately $20 billion in oil-backed loans. The remainder includes commercial debts, expropriation awards, and obligations to Russia.

For the region, the process redraws the oil investment map. Venezuela holds the world's largest proven crude oil reserves but produces only 500,000 barrels per day. The return of foreign capital to the sector depends on the restructuring clearing PDVSA's liabilities and offering creditors meaningful guarantees.

Venezuelan bonds, which traded at 6 cents on the dollar in 2020, rose to approximately 40 cents following Maduro's capture. A Citi analysis cited by the Atlantic Council projects recoveries of between 40 and 50 cents on the dollar for holders, with possible oil-linked instruments. The Venezuelan economy has contracted to approximately $100 billion, down from $370 billion in 2012, placing the debt-to-GDP ratio above 200 percent. Oil revenues in the first quarter of 2026 totaled $5.5 billion.

The earthquakes of June 24, 2026, which caused more than 3,000 deaths, added reconstruction costs estimated at $37 billion, according to the Atlantic Council, intensifying pressure on public finances.

The viability plan being prepared by Centerview Partners will be published in the coming weeks. A preliminary agreement with creditors before the end of 2026 opens the door to direct foreign investment in Venezuela's oil sector for the first time in more than a decade. Most analysts, however, do not expect a final close until 2027, according to the Atlantic Council.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.