Venezuela Initiates Major Debt Restructuring Plan

Venezuela has launched a major foreign debt restructuring plan to manage its total external debt, which stands at $170 billion. The country has been in default since 2017 and is currently facing economic challenges, with its economy valued at roughly $110 billion.

The U.S. Treasury Department has authorized Caracas to appoint legal and financial advisors to assist in the restructuring process, which is often lengthy and complicated, involving extensive discussions with creditors.

The restructuring efforts come amid U.S. financial sanctions that have weakened Venezuela's ability to honor its debt obligations. The situation has been further complicated by the capture of former Venezuelan leader Nicolás Maduro by U.S. military forces in January.

The U.S. administration under Donald Trump had previously pushed to expand its influence over Venezuela's vast oil reserves, which are critical to the country's political and economic affairs.