Expected recovery on Venezuelan debt runs from 25 to 50 cents on the dollar

The leading investment banks expect a recovery of 25 to 50 cents on the dollar. It is measured against the face value of the debt.

Take the figure with caution. The study presents it as a consensus scenario, not a firm projection. The spread between types of creditor is wide.

For unsecured PDVSA bonds, the study estimates between 15 and 30 cents. For oil suppliers, less than 10 to 15 cents. The difference depends on the legal quality of each claim.

In PDVSA bonds, moreover, a single holder can block the exchange. That veto also goes into the price.