Venezuela is preparing to acknowledge $240 billion in unpaid debts, a staggering $40-90 billion more than investors anticipated. This revelation positions Caracas for the largest sovereign debt restructuring in history, dwarfing Greece's 2012 default that shook European markets.

Interim President Delcy Rodríguez inherited this fiscal nightmare after Nicolás Maduro's capture in January. Her administration aims to negotiate with creditors before year-end, though skepticism runs deep among investors who doubt any meaningful deal will emerge before 2027.

Centerview Partners, the US advisory firm steering the restructuring, will publish its viability plan in early July. Meanwhile, Venezuela's economy has collapsed from $370 billion in 2012 to roughly $100 billion today—a contraction that makes debt servicing nearly impossible.

Notably absent from the restructuring process is IMF endorsement, raising concerns among opposition leaders. The debt portfolio includes $60 billion in government and PDVSA bonds plus accumulated interest, along with obligations to oil companies, China, and Russia. With first-quarter oil revenues at just $5.5 billion, creditors face an uphill battle recovering their investments.