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Sonntag, 1. Januar 2017

I partnered with Mark Walker (currently at Millstein, previously at Rotschild, Lazard and Cleary Gottlieb) in order to analyze the financial strategies that Venezuela can take to restructure its debt. Mark is a highly experienced and respected sovereign debt lawyer and advisor, having dealt with many crises since the Mexican 1982 default, helping governments deal with difficult times.

It is really painful to see Venezuela spiral down into the abyss while renouncing to all the financial tools at its disposal to protect its people and its economy. These tools involve restructuring the debt and asking for financial support from the IMF. Instead, the government and PDVSA have opted to remain current on their bonds, default on everybody else and cut imports like crazy, causing a collapse in output and wellbeing. 
Many have argued that a restructuring would be the end of the world and that it is best to avoid it at all cost. For this month's column for Project Syndicate I partnered with Mark Walker (currently at Millstein, previously at Rotschild, Lazard and Cleary Gottlieb) in order to analyze the financial strategies that Venezuela can take to restructure its debt. Mark is a highly experienced and respected sovereign debt lawyer and advisor, having dealt with many crises since the Mexican 1982 default, helping governments deal with difficult times. 
Venezuela needs a major policy reform to mend its ways. But it cannot do without a restructuring of its debt. Argentina's experience with holdouts has made people fear this course of action for fear of a similar fate. Some have stoked those fears with disinformation. I will not go into discussing their motivations and interests. But in this piece, Mark and I propose a way forward. Hope you find it interesting.

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