How Venezuela Has Managed to Avoid Sinking Into Default

Venezuela faces severe economic stress, yet it has managed to avoid defaulting on its debt by prioritizing bondholders, which has become a matter of national pride. This prioritization has led to a humanitarian crisis, exacerbated by sanctions and a deteriorating democracy. The country has employed various strategies, including using reserves and dubious transactions, to meet debt payments. Despite these efforts, Venezuela's economy remains devastated, with hyperinflation predicted by the IMF. The political climate is tense, with recent elections marred by fraud allegations against Nicolas Maduro's regime.

What has Venezuela prioritized over imports to maintain its national pride?

• Infrastructure development

• Debt payments

• Military spending

• Healthcare investments

What is one method Venezuela has used to gather funds for debt payments?

• Increasing oil exports

• Liquidating gold reserves

• Cutting public services

• Raising taxes

What is the estimated inflation rate for Venezuela next year according to the IMF?

• 3000%

• 2000%

• 1000%

• 500%

What is a significant consequence of Venezuela's economic strategy?

• Stable currency

• Humanitarian crisis

• Increased foreign investments

• Improved public services

What recent political event in Venezuela has been marred by allegations of fraud?

• Presidential elections

• Local council elections

• Parliamentary elections

• Gubernatorial elections