Investors ask trade group if Venezuela sovereign debt is in default

Ratings Agencies Cave: Venezuela Defaulted, Selectively

Standard & Poor's estimates that United Kingdom consumer credit, which has grown by 10 per cent annually, now stands at £200 billion, and is unsustainable.

S&P's verdict came after the Venezuelan government met with worldwide creditors in Caracas but offered no concrete plan for restructuring its $150 billion debt.

Maduro said at the weekend that talks with China were "moving along perfectly" and noted that agreement had been reached with Moscow to restructure roughly $3 billion in loans.

Beijing and Moscow have emerged as Venezuela's most reliable sources of funding, with China owed $28 billion and Russian Federation $8 billion.

S&P said on Tuesday it declared Venezuela in "selective default" because it failed to make $200 million in payments on two global bond issues by the end of a 30-day grace period, which fell on November 12.

Venezuela's government said its plan to refinance some $60 billion in bonds was successfully underway, while a rating agency declared the nation in selective default over missed coupon payments.

Venezuela's debt crunch comes as no surprise, as the government cuts back on imports to service its debt, leaving the population struggling with shortages of food and medicine.

In the past, despite the hardships its people suffer, Venezuela has used its foreign reserves to make bond payments. It lasted about 30 minutes, and vice president Tareck El Aissami, Venezuela's debt negotiator, mainly used the meeting as a chance to complain about Donald Trump.

But participants in a first meeting in Caracas on Monday said officials had come up with no concrete proposals for restructuring the debt.

"If any potential restructuring operation is completed, we would lower all of our foreign currency ratings on Venezuela to default and subsequently raise them to the "CCC" or "B" category".

American investors can't participate in a restructuring anway, as sanctions prohibit them from receiving new bonds that Venezuela would issue.

The US has designated vice president El Aissami himself a drug kingpin with whom US entities are barred from dealing.

PDVSA, in turn, relies on credit lines from global banks to finance oil production.

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