Causes of Venezuela's sovereign debt default

In Venezuela several phenomena materialised that usually precede sovereign debt default according to the literature. Among them, are the volatility of economic growth, the collapse of activity and the misalignment of the real exchange rate, an imbalance that generated the appreciation of the bolivar due to the established fixed parity. In this article, it is validated that institutional weakness seems to be a determinant of debt default, a situation that occurred after the biggest oil price boom on record. The country came to be defined as a serial debtor due to periodic default on its obligations.