Latin American Economy & Business - September 2017 (ISSN 1741-7430)

The US government pledged decisive action if the Venezuelan government went ahead with controversial elections for a constituent assembly at the end of July, and it is showing signs of following through on that promise. After expanding targeted sanctions against specific individuals in the aftermath of the elections, including against President Nicolás Maduro himself, the US government followed up with broader economic measures. On 25 August, the US levied financial sanctions that prevent Venezuela from issuing dollar-denominated bonds in international capital markets. The measures also complicate the trading of some existing bonds and thereby raises further questions about the government’s ability to stave off default.