Venezuela has $21 billion of debt due by the end of 2016 and only $21 billion in reserves as if governments pay off their debt out of reserves. And CNN reports that the spectre of default looms larger for Venezuela, which is deep in debt and has been burning through its foreign currency reserves. Should foreign investors believe these stories? When in doubt, it is usually a good idea to look at the numbers. There are two types of dollar-denominated bonds that these reports refer to: Venezuelas sovereign or government bonds, and the bonds of the state oil company, PDVSA.
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