BWC Member Richard Cooper co-authored a new piece with Ignacio Lagos and Sean O’Connell examining a path forward for Venezuela’s debt restructuring in the wake of the devastating June earthquakes. The authors argue Venezuela doesn’t have to choose between a fast, uncertain restructuring and a slower, more credible one; instead, it could begin with a rigorous claims validation and reconciliation process, then exchange existing defaulted debt into standardized “mirror bonds” with modern anti-holdout protections, potentially enhanced through a Brady Bond-style structure backed by U.S.-protected Venezuelan oil revenues.

To continue reading, visit Cleary Gottlieb Steen & Hamilton LLP’s website, click here.

Watch Richard Cooper’s insights on sovereign debt restructurings from a recent BWC Dialogues event:

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.