Venezuela faces default fears as LatAm economic woes mount

17 Sep, 2014

CARACAS: Despite sitting atop the world's largest oil reserves, Venezuela's government is facing mounting concerns about its solvency, prompting a downgrade that has added to Latin America's recent economic bad news.

Venezuela owes more than $6.4 billion in debt payments in October, equal to one-third of its total declared hard currency reserves.

The overall economic picture is also bleak, with Venezuelans hit by chronic shortages of basic goods, annual inflation of more than 60 percent and a stricken economy that S&P said risked shrinking up to 3.5 percent this year.

Copyright AFP (Agence France-Presse), 2014

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